Ex-Stag is new manager at Heanor Town
Derby-born Martin, 31, played 26 times for the Stags in the 2007/98 season when he was unable to help the club avoid relegation to the Conference.
Martin, who had just completed two seasons at Notts County, was part of a summer double signing announcement by the club as boss Billy Dearden swooped for him and striker John McAliskey on the same day.
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A former England and Wales captain at various age groups, he also appearing for Tamworth, Mickleover Sports and Coalville Town before his playing career ended.
Martin had most recently managed at Rocester, and replaces Paul Postlethwaite who stepped down at the end of the season.
Martin said: “I can’t wait to get started and the season underway. “I’m looking forward to working with the great youth set-up here and developing young talent.
“I’m hoping that a lot of the players from last season will remain and play for me and I will aim to bring in five or six new faces.
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“I’ll make an announcement on my backroom staff once things are sorted.”
Lions chairman Geoff Clarence added: “Dan came across very well and I’m sure he can pass his wealth of professional experience on to a lot of people in and around the club.
“He has seen both aspects of the game, from being sold from one club to another to managing a non-League team and fetching balls, players and corner flags. We wish him all the best and hopefully fans will get behind him from the start.”