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 | Sheffield UnitedSheff Utd | 21 | 14 | 5 | 2 | 30 | 11 | 19 | 45 |
| 2 | Leeds UnitedLeeds | 21 | 12 | 6 | 3 | 37 | 15 | 22 | 42 |
| 3 | Burnley | 21 | 11 | 8 | 2 | 26 | 8 | 18 | 41 |
| 4 | Sunderland | 21 | 11 | 7 | 3 | 32 | 17 | 15 | 40 |
| 5 | Blackburn RoversBlackburn | 20 | 11 | 4 | 5 | 25 | 17 | 8 | 37 |
| 6 | Middlesbrough | 21 | 10 | 4 | 7 | 35 | 25 | 10 | 34 |
| 7 | Watford | 20 | 10 | 4 | 6 | 29 | 26 | 3 | 34 |
| 8 | West Bromwich AlbionWest Brom | 21 | 7 | 11 | 3 | 24 | 16 | 8 | 32 |
| 9 | Sheffield WednesdaySheff Weds | 21 | 8 | 5 | 8 | 26 | 30 | -4 | 29 |
| 10 | Swansea CitySwansea | 21 | 7 | 6 | 8 | 23 | 22 | 1 | 27 |
| 11 | Bristol City | 21 | 6 | 9 | 6 | 26 | 26 | 0 | 27 |
| 12 | Norwich CityNorwich | 21 | 6 | 8 | 7 | 36 | 32 | 4 | 26 |
| 13 | Millwall | 20 | 6 | 7 | 7 | 20 | 18 | 2 | 25 |
| 14 | Derby CountyDerby | 21 | 6 | 6 | 9 | 26 | 26 | 0 | 24 |
| 15 | Coventry CityCoventry | 21 | 6 | 6 | 9 | 27 | 30 | -3 | 24 |
| 16 | Preston North EndPreston | 21 | 4 | 11 | 6 | 21 | 27 | -6 | 23 |
| 17 | Stoke CityStoke | 21 | 5 | 7 | 9 | 23 | 28 | -5 | 22 |
| 18 | Queens Park RangersQPR | 21 | 4 | 10 | 7 | 21 | 27 | -6 | 22 |
| 19 | Luton TownLuton | 21 | 6 | 4 | 11 | 23 | 37 | -14 | 22 |
| 20 | Oxford UnitedOxford Utd | 20 | 4 | 6 | 10 | 21 | 33 | -12 | 18 |
| 21 | Cardiff CityCardiff | 20 | 4 | 6 | 10 | 19 | 32 | -13 | 18 |
| 22 | Portsmouth | 19 | 3 | 8 | 8 | 21 | 34 | -13 | 17 |
| 23 | Plymouth ArgylePlymouth | 20 | 4 | 5 | 11 | 19 | 42 | -23 | 17 |
| 24 | Hull City | 21 | 3 | 7 | 11 | 19 | 30 | -11 | 16 |
| > Championship Full Table | |||||||||
