Coppell has signed a one-year contract with the First Division club with Hinshelwood removed from his post as manager.
Brighton chairman Dick Knight told the club's official website:
"Steve Coppell will bring a level of experience we feel is vital at this time. I have made him fully aware that no increase in the playing budget will suddenly be made available, but he understands the club's position as I interviewed him for the job in the summer and he is now eager to get started."
Must be a consequence of spending all that time in Manchester.