Torpey will assist Andy Porter, the Minstermen's assistant manager, at Tamworth on Saturday after the departure of Martin Foyle.
Foyle has been in charge at Bootham Crescent since 2008 and led them to last season's play-off final, where they were defeated by Oxford United, but resigned after a stuttering start to the season.
"We have reached the promotion play-off final and been to Wembley twice and these have been very proud moments in my career," said Foyle.
"We also reached the third round of the FA Cup and played against Premier League opposition. The club record of 10 consecutive wins was also a fantastic achievement for all my players.
"With the money from the cup runs, Wembley visits and the sale of Richard Brodie I know I leave the club in a much healthier position than when I arrived 20 months ago."
Torpey spent seven seasons at Glanford Park after signing from Bristol City for £175,000 in 2000.
He scored 76 goals in 280 appearances in all competitions, before joining Lincoln City, Farsley Celtic then North Ferriby United.
He joined York as youth team coach in December 2008, and has made two appearances for them after remaining registered as a player.