Barton, who has a long-standing friendship with Pilley and nearly joined the club on loan from QPR in 2012, said: "I'm very excited by the challenge and the project".
Now serving a 13-month suspension, which was originally 18 but was reduced, Barton was found guilty of 1,000 bets on matches in the past decade.
The Cod Army have endured something of a roller-coaster season, even sacking Uwe Rosler midway through the campaign, but Sheridan has steadied the ship during his time at the club.
"It's a club I've known for a long time, and a chairman I already have a very good relationship with", Barton continued.
'Joe will match everything about this club. There's so much he has to offer to any football club and I think we're fortunate.
Pilley insisted he was "not at all" concerned over Barton's temperament.
"Everybody's made mistakes but I care about the future, not the past", Pilley told BBC Sport on Thursday.
The EFL is committed to tackling the under-representation of black, Asian or ethnic minority (BAME) coaches across all 72 member clubs.
File image of Joey Barton.
It's something Fleetwood Chairman Andy Pilley is fully aware of. 'My last two managers, one was a German and one was Irish - so nobody could every accuse us of not being an equal-opportunity club, ' he said.
The 35-year-old Barton was hired as the new coach of third-tier team Fleetwood on a three-year deal on Wednesday.
"I'm looking forward to getting started on June 2nd".
Any attempts by Barton to instill discipline in his Fleetwood squad will be interesting, given his own own colourful past.
Away from football, Barton was jailed for six months in May 2008 after admitting common assault and affray during an incident in Liverpool the previous December. He served 77 days.
Even prior to his betting ban, former Manchester City, Newcastle United, QPR, Marseille, Rangers and Burnley midfielder Barton's chequered career had been beset by controversies, including training ground punch-ups and on-field fights. He kicked Sergio Aguero and tried to headbutt Vincent Kompany.
BC-SOC-Barton-Management, 134Barton to take up coaching role after betting ban expiresEds: APNewsNow.
The former Manchester City man has always been a controversial character and in 2016 he had his contract terminated at Rangers after just eight matches following a torrid spell for the Scottish side.
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Two Gilchrist deputies slain
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Smoke from northwest Oklahoma wildfires Wednesday may move into Oklahoma City
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Facebook Canada officials grilled at parliamentary committee on privacy
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Dinosaur puppet 're-enlisting' gets pair booted from Tennessee Guard
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