The former Blackpool manager will replace Graham Westley, who left Deepdale by mutual consent last week.
Grayson has been out of work since he was sacked by Championship outfit Huddersfield Town earlier in the season.
He will take charge of a club that is 17th in the League One table and are eight points clear of the relegation zone.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Leeds UnitedLeeds | 28 | 17 | 8 | 3 | 53 | 19 | 34 | 59 |
| 2 | Sheffield UnitedSheff Utd | 28 | 18 | 6 | 4 | 40 | 18 | 22 | 58 |
| 3 | Burnley | 28 | 15 | 11 | 2 | 36 | 9 | 27 | 56 |
| 4 | Sunderland | 28 | 15 | 9 | 4 | 40 | 22 | 18 | 54 |
| 5 | Middlesbrough | 28 | 12 | 8 | 8 | 46 | 34 | 12 | 44 |
| 6 | Blackburn RoversBlackburn | 28 | 12 | 6 | 10 | 31 | 26 | 5 | 42 |
| 7 | West Bromwich AlbionWest Brom | 28 | 9 | 14 | 5 | 33 | 24 | 9 | 41 |
| 8 | Watford | 28 | 12 | 5 | 11 | 39 | 39 | 0 | 41 |
| 9 | Bristol City | 28 | 9 | 11 | 8 | 35 | 33 | 2 | 38 |
| 10 | Queens Park RangersQPR | 28 | 9 | 11 | 8 | 32 | 35 | -3 | 38 |
| 11 | Sheffield WednesdaySheff Weds | 28 | 10 | 8 | 10 | 40 | 45 | -5 | 38 |
| 12 | Norwich CityNorwich | 28 | 9 | 9 | 10 | 43 | 41 | 2 | 36 |
| 13 | Coventry CityCoventry | 28 | 9 | 8 | 11 | 37 | 37 | 0 | 35 |
| 14 | Oxford UnitedOxford Utd | 28 | 9 | 8 | 11 | 33 | 43 | -10 | 35 |
| 15 | Swansea CitySwansea | 28 | 9 | 7 | 12 | 31 | 35 | -4 | 34 |
| 16 | Preston North EndPreston | 28 | 7 | 13 | 8 | 30 | 35 | -5 | 34 |
| 17 | Millwall | 27 | 7 | 10 | 10 | 26 | 26 | 0 | 31 |
| 18 | Portsmouth | 27 | 7 | 8 | 12 | 35 | 46 | -11 | 29 |
| 19 | Stoke CityStoke | 28 | 6 | 10 | 12 | 26 | 36 | -10 | 28 |
| 20 | Cardiff CityCardiff | 28 | 6 | 10 | 12 | 31 | 43 | -12 | 28 |
| 21 | Derby CountyDerby | 28 | 7 | 6 | 15 | 31 | 38 | -7 | 27 |
| 22 | Hull City | 28 | 6 | 8 | 14 | 27 | 38 | -11 | 26 |
| 23 | Luton TownLuton | 28 | 7 | 5 | 16 | 29 | 47 | -18 | 26 |
| 24 | Plymouth ArgylePlymouth | 28 | 4 | 9 | 15 | 25 | 60 | -35 | 21 |
| > Championship Full Table | |||||||||
