Sheridan, 51, unveiled as boss a day after Butcher left the club on Thursday, will take charge of this weekend's Sky Bet League 2 game against Exeter.
The former Oldham, Chesterfield and Plymouth boss is yet to confirm his backroom staff and will be assisted by Byron Anthony and Michael Flynn on Saturday.
Sheridan told the club's official website
: "Following the Supporters Trust taking control of the club in the past 24 hours, I'm confident that if the players and fans work together we can help the squad climb the table, away from the relegation zone.
"From my time at with Plymouth, Chesterfield and Oldham, I know what is required to succeed in this division."
A brief club statement read: "The trust board are delighted that John has agreed to join us.
"He comes with an excellent track record and we would ask fans continue to support the club by coming along to John's first game against Exeter on Saturday, and of course the first game as a supporter owned community based club."
Newport are rooted to the bottom of the table after winning only one of their opening 10 league games.
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