The 49-year-old Potter worked unpaid for the last three months of his two-year contract at the Bulls and rejected the chance to continue in the role under new ownership in order to find a job back in Australia.
His gamble paid off on Wednesday when he was unveiled as the new Tigers boss on a two-year contract.
Wests Tigers chief executive Stephen Humphreys said: "We are thrilled to secure Mick's services for the next couple of seasons.
"Mick has enjoyed considerable success in Europe and we have no doubt that he is ready for the challenge that the NRL will present.
"We see him as the perfect person for the role. He has demonstrated his qualities as a coach in a range of differing circumstances over the last seven years.
"He will bring not only this experience but importantly, also a fresh pair of eyes and a new energy to our club."
Potter takes over from Sheens, the Australia national coach whose 10-year tenure with the Tigers came to an end last month when he was relieved of his coaching duties with two years left on his contract after the side failed to make the 2012 play-offs.
The former St George captain and full-back is thought to have beaten ex-Huddersfield boss Nathan Brown, Manly assistant Matt Parish, who was briefly in charge of Salford in 2011, and his successor at Catalan Dragons Kevin Walters, to the post.