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Sherwood was part of former manager Peter Mulcaster’s coaching staff and took up his new role for the first time in Saturday’s 1-0 loss to Brandon United.
The result left the Citizens sitting at the bottom of the Division Two table after collecting just one point in their first nine games of the season.
Sherwood immediately set a goal of adding more Northern League experience to his ranks as he takes on the “massive task” that lies ahead.
He said: “This is my first job as a manager and it’s something I’ve been working on for a long time.
“I couldn’t refuse the opportunity to manage Durham City.
“I know the guys and look forward to working with them, but I also hope to attract new players with Northern League experience.”
He added: “There’s no denying the fact that this is a huge task, but I believe in my own abilities and can’t wait to put my mark on the team.
“I have a great number two with Ian Thompson and I will be coaching Craig Whitney, someone I have worked with in the past.”
Sherwood was due to oversee his second game at the helm when his new team traveled to Carlisle City on Tuesday night – but the game has now been postponed.
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