Sunderland have appointed Preston North End boss Simon Grayson as their new manager after earlier announcing that the proposed sale of the club is off.
The 47-year-old replaces David Moyes, who resigned in May following the Black Cats' relegation to the Championship.
Since taking over at Preston in 2013, Grayson has led them to promotion from League One and two 11th-place finishes in the second tier.
The ex-Huddersfield and Leeds boss has signed a three-year deal on Wearside.
"I am delighted to come to Sunderland, a club with such wonderful history and tradition," said Grayson, who brings Preston assistant Glynn Snodin with him to the Stadium of Light.
"I want a group of players full of desire, team spirit and a never-say-die attitude - that's the very least that we should expect from a Sunderland player."
Sunderland were granted permission to speak to Grayson on Thursday morning, after the club's initial search for a new boss was put on hold earlier in the month while talks over a potential sale of the club were ongoing.
Preston said that, after contact from the Black Cats, Grayson asked to speak to the club, with a statement from North End confirming that a compensation package, believed to be about £750,000, was already guaranteed in his contract.
Sunderland had previously approached Aberdeen to speak to Derek McInnes regarding their managerial vacancy, but he chose to remain with the Scottish Premiership side.
New boss, but no new owners
Off the pitch, the Black Cats say owner Ellis Short will "continue his commitment, financially and personally", after talks with a German consortium ended.
A statement on Thursday confirmed they had been in talks with an interested party in the past week, but have now decided the takeover "would not be in the best interests" of the club.
A television production company fronted by Sunderland fans withdrew its bid to take over on 21 June, leaving the German consortium in the running.
But now American Short will continue in charge of the club he has owned since 2009.
"We would like to thank our supporters for their patience during what we know has been a period of uncertainty and frustration for them," said Sunderland's statement.