The chef, who runs the Black & Green and 8 restaurant brands, will open Restaurant OXA at the Merseyside site later this year.
The new restaurant, which takes its name from the Old Norse word oxa-tún, which represents the word Oxton, is just a few miles from where Sheridan grew up.
It is due to open in May and will focus on seasonal British produce and nostalgic flavours.
“It is a dream come true to open a restaurant in the village I grew up in,” says Sheridan.
The acquisition marks a busy time for Sheridan and his business partner Sam Morgan, who launched their debut pub The Wye Inn in Newent Gloucestershire at the start of the month. Upstairs at The Wye, a fine dining neighbourhood restaurant above the venue, will open in May.
Sheridan will also reopen his restaurant 8 in Liverpool this week at a site near to the Cavern Club having relocated it from its original site in Birmingham.
“This is a very exciting time for Open Restaurant Group, and we are pleased to add the restaurant formerly known as Fraiche to our expanding portfolio,” says Morgan.
“We look forward to bringing our brand of fine dining neighbourhood bistro to this part of Merseyside.”
Fraiche was run by chef-patron Marc Wilkinson for nearly 20 years with the Michelin-starred restaurant closing last year.