The 42-year-old will be assisted at Marston Road by former Wolves defender Matt Hill, who has been with the Northern Premier League club as a player since early 2019.
Banim’s arrival follows an extensive recruitment process carried out by the Boro after previous managerial duo Alex Meechan and Andy Fearn stepped down in early April.
Fearn was appointed the club’s new director of football and led a search in which Banim, who won promotion from the Northern League with Ashton United in 2017, proved the strongest candidate.
He said: “Jody just impressed us from the start with his enthusiasm and knowledge of the game, at our level and above.
“We believe he is the right man at the right time. He has demonstrated in his management career an ability to rise to challenges and we welcome him on our journey.”
Banim, a former Manchester United trainee who boasted a prolific scoring record as a non-league striker, had been out of management since stepping down from his role at Ashton last November.
He said: “Stafford Rangers are a massive football club and our objective is clear.
“We want and will bring back the glory days and we are proud to be part of the Boro.”