Wotton was unveiled alongside the club’s new football advisor Neil Warnock.
The former Huddersfield Town, Aberdeen and Leeds United boss – who spent a spell as Gulls boss in 1993 – has joined the club’s board on an unpaid basis to help try and revitalise the club after the takeover.
“I didn’t envisage being in Torquay if I’m honest,” Warnock told BBC Sport.
“But a passing chance Michael (Westcott) bumped into me and my wife on the train from London and pestered the life out of me, and it seemed a very, very good thing at the end of my career to put something back into football.
“I can’t begin to tell you how much this club has helped me in my career, if it wasn’t for Torquay I don’t think I’d have had the career I had.”
Wotton led Truro to promotion from the Southern Premier League last year and then guided them to a 16th-placed finish in their first season back in the sixth tier.
They ended the season two points above the Gulls, who had a total of 11 points deducted, with Wotton masterminding a 1-0 win over Torquay at Plainmoor on Boxing Day.
The former Plymouth assistant manager has drawn praise for managing a side that has been homeless for much of his time in charge – Truro are due to move to a new home ground this summer.
They spent the past season playing home matches at Plymouth Parkway and Gloucester City – and were forced to play 13 games in the final four weeks of the season due to a raft of postponements.
“Everyone connected with Truro City thanks Paul for his time spent in charge of the football club and we wish him well in his future endeavours,” a statement from the Cornish club read.
“The process of replacing Paul is now well under way.
“Prospective candidates are invited to apply for the role of first team manager in this, an exciting chapter in the club’s history as it returns to Cornwall, in a new stadium within the Langarth village development.”