MARTIN Gray has been named York City’s new manager after handing in his resignation as Darlington boss.

The 46-year-old former Sunderland and Oxford midfielder was installed as 1-2 favourite to replace Gary Mills at Bootham Crescent just hours after the latter’s dismissal following the Minstermen’s 3-2 FA Cup third qualifying round defeat at South Shields.

Gray has managed Darlington since 2012, winning three promotions to take the former Football League outfit from the Northern League to National League North, where they finished last term in a play-off place but could not participate as their ground did not have the required number of seats required for promotion.

Born in Stockton, Gray will be joined by Dave Penney, who will be City's new director of football.

The pair have previously worked together when Gray was Penney's assistant at both Darlington and Oldham with the latter also Guiseley's director of football prior to leaving the Leeds club in August.

As a player, Gray started out with Sunderland, where he was loaned out to Aldershot and Fulham.

He went on to make more than 100 appearances for Oxford, before finishing his career at Darlo.