Jepson was with Burnley for six years, first as a player and then as reserve team coach, but left the club in the summer of 2004.
He moved on to work with Ternent at Gillingham, eventually becoming manager there and later joined up with Stan again at Huddersfield.
He then switched sides, so to speak, and worked alongside Stan's nemesis Neil Warnock at Crystal Palace, QPR and most recently Leeds where he was Warnock's number two, losing his job when Warnock stood down towards the end of the season.
He now joins a club who, from last week, are under new ownership and he said: "It's good to be back. I have some great memories of this place and a lot of success here. When the gaffer rang me and offered me the job, I didn't think twice. We had a quick chat and everything was sorted out quickly and I'm ready to go.
"I know where this club can go and I know that Kevin Blackwell is very excited with the new ownership. In terms of the philosophy and where we are going to go, I am not a part of that and really looking forward to it."
Jepson played for Bury under Ternent but moved on to Oldham for a few months before rejoining his old manager at Burnley where he ended his playing career, his last appearance coming on New Year's Day 2001.
He played a total of 59 league games for the Clarets, of which only four were starts, before joining the backroom team and kicking off a coaching career that has now taken the 50-year-old back to Gigg Lane.