The former Blackpool boss replaces Graham Westley, who parted company with the League One side this month.
Preston |
Westley left the club following their 3-1 defeat at Yeovil before caretaker boss John Dreyer led them to a 2-0 win over Bournemouth on Saturday, catapulting them up to 17th in the league.
Former Leeds boss Grayson was sacked from his managerial position at Championship side Huddersfield last month and had been linked with the vacancies at Oldham and Notts County.
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