Poyet was sacked as Real Betis coach on 13 November after just four months in charge at the Benito Villamarin, with the club managing only 11 points from as many LaLiga matches, while the Uruguayan reportedly alienated numerous players.
The ex-Chelsea player has not been out of work for long, however, with Shenhua confirming his switch to China on Wednesday (AEDT) after Manzano was not handed a contract extension.
Former Atletico Madrid and Sevilla coach Manzano guided Shenhua to fourth in the 2016 Super League season, its best finish since 2010, but left due to "differences both sides have regarding culture and football".
Shenhua confirmed Poyet as Manzano's successor in a statement: "Shanghai Shenhua have signed Uruguayan coach Gustavo Poyet as the head coach for the new season.
"Poyet has arrived in Shanghai with his backroom staff, which include Italian assistant coach Mauricio Tarico, Greek fitness coach Panagiotis Voulgaris, English analyst Charlie Oatway and his compatriot goalkeeper coach Andy Beasley.
"Poyet and his coaching team arrived this morning and he will lead the team through a two-month winter training preparation, to further enhance the team's technical and tactical strength ahead of the new season of Asian and domestic football.
"The club is looking forward to Poyet leading the Shenhua team."