Stoke City have given Leicester City permission to speak to Robert Huth about a possible loan deal.
Ivica Olic looks to be on his way back to Hamburg, with Andre Schurrle increasingly likely to join Wolfsburg.
The 45-year-old former England, Manchester United, Inter Milan and Liverpool midfielder has agreed a one-year rolling contract at Bloomfield Road.
Following a near two-year absence from management, Ince will take charge of his son and England Under-21 winger Tom, who is Blackpool's top scorer with 17 goals in 33 games this season.
"It's great to be here," Ince told Blackpool's official website after taking his first training session at Squires Gate on Monday morning.
"Considering I've watched the team play for the last 14 months, it's strange sitting here as the manager, having obviously watched Blackpool as a fan as well as watching my son play.
"I'm over the moon though and delighted, it's great to be back on the training ground and great to be involved with, and in charge of, a great bunch of lads.
"I've worked with a lot of players and the spirit and togetherness of the lads is absolutely fantastic. I'm glad I've been given the opportunity by (Blackpool chairman) Karl Oyston."
Ince took on his first managerial assignment with Macclesfield in October 2006 and went on to keep the struggling Silkmen in the Football League on the final day of the 2006-07 season.
He moved on to MK Dons, where triumphs in the Football League Trophy and League Two play-off final paved the way for a move to Blackburn in the summer of 2008.
Ince's foray into top-flight management proved deeply disappointing, though, and he was relieved of his duties after registering only three wins from 17 Premier League matches.
A second, less successful, spell at MK Dons followed in the 2009-10 season before Ince took the reins at Notts County in October 2010, but his six-month tenure at Meadow Lane ended with a club-record nine game losing streak and his departure by mutual consent.
Ince is Blackpool's third manager this season, following on from Ian Holloway and Michael Appleton.
Holloway, who memorably led Pool to the Premier League in 2010 and suffered Wembley heartache at the hands of West Ham in last season's npower Championship play-off final, left to join Crystal Palace in November.
Highly-touted coach Appleton came in as his successor from Portsmouth but was lured across Lancashire by Blackburn last month, ending a nine-week spell in charge.
Blackpool lie 14th in the Championship table, 10 points shy of the play-off places and six above the relegation zone ahead of their trip to Leeds on Wednesday night.
Paul Ince factfile:
1967: Born in Ilford, October 21.
1985: Joins West Ham as trainee.
1989: After 93 appearances and 12 goals for West Ham, joins Manchester United in a deal worth £1million plus pay-as-you-play payments.
1990: Wins FA Cup winners' medal as United beat Crystal Palace 1-0 in a Wembley replay. United share Charity Shield after 1-1 draw with Liverpool.
1991: Member of successful European Cup Winners' Cup team who beat Barcelona 2-1 in Rotterdam and European Super Cup side who defeat Red Star Belgrade 1-0.
1992: Picks up League Cup winners' medal after United beat Nottingham Forest 1-0 at Wembley. Makes full England debut on September 9 in 1-0 defeat by Spain in Santander.
1993: Picks up first of two Premiership winners medals. Becomes first black player to captain England, on the tour of the United States.
1994: Member of United's Premiership and FA Cup-winning side. Double completed with 4-0 final victory over Chelsea.
1995: Charged with common assault on Crystal Palace fan after fracas during Premiership game at Selhurst Park on January 25.
Joins Inter Milan in £7million deal - a record fee received for United - and quickly becomes a big hit with the Inter fans.
1997: Liverpool head off interest from Premiership rivals to secure Ince's return to England in a £4.2million deal.
Captains England - and plays on with head wound - as they qualify for the World Cup finals thanks to a goalless draw against Italy in Rome.
1998: Plays with broken toe as England bow out of World Cup against Argentina at the second-round stage in France.
Banned for three matches by UEFA for red card in England's opening European Championship qualifier in Sweden and for remarks made to Italian referee Pierluigi Collina.
1999: Fails to win England recall under new national coach Kevin Keegan.
June - Liverpool manager Gerard Houllier announces Ince is surplus to requirements at Anfield and will be allowed to leave.
July - Joins Middlesbrough for £1million.
October - After being overlooked for five games, wins England recall for friendly against Belgium.
November - Plays in both legs of Euro 2000 play-off victory over Scotland.
2000: Named in Keegan's squad for Euro 2000.
2002: August - Joins First Division Wolves after being released by Middlesbrough.
2003: May - Helps Wolves win promotion to the Premiership through the Division One play-offs.
2004: May - Wolves relegated after one season in the top-flight. Ince is expected to retire, but opts to play on for a further season.
2005: August 1 - Still at Wolves, Ince reveals the 2005/6 season will be his last as a player.
2006: August 30 - Leaves Wolves for League Two Swindon, prolonging his playing career for another season.
October 4 - After making only three appearances, has Swindon contract cancelled by mutual consent, citing "personal reasons" for his departure.
October 23 - Takes first job in management at Football League bottom club Macclesfield. Goes on to save them from relegation on the final day of the season.
2007: June - Unveiled as new manager of MK Dons
2008: March - Dons defeat Grimsby 2-0 to win Football League Trophy
April - Wins promotion to League Two secured with a 3-2 win over Stockport on April 1. MK Dons' status as champions is confirmed with a 2-1 triumph against Bradford later in the month.
June - Appointed as Blackburn manager.
December - Sacked after winning just three of 17 Premier League games in charge of Rovers.
2009: July - Returns to MK Dons on a two-year deal but leaves at the end of the 2009/10 season.
2010: October - Signs three-year deal to become Notts County manager.
2011: April - Leaves Notts County by mutual consent following a club-record run of nine consecutive defeats.
2013: February 18 - Confirmed as the new manager of Blackpool on a one-year rolling contract.