Martin Gray has been appointed manager of York City, ending his five year term as boss at Darlington FC.
The former Sunderland player replaces Gary Hill, who was sacked by York after their FA Cup defeat to South Shields on Saturday.
York has also appointed Dave Penney to a new role - Sporting Director.
A statement from York City said that the decision to sack Mills, and his assistant-manager Darren Caskey, was based on the club’s performances over two seasons.
A statement from the club's owner said that their position in the league is 'unacceptable'.
On Sunday afternoon, York City confirmed the appointment of Martin Gray as first team manager and Dave Penney as sporting director.
Chairman and owner Jason McGill described Gray as an 'ambitious and talented manager’ who ‘deserves an opportunity’ with a full-time club.
He revealed that York-born former England manager Steve McClaren had personally recommended the former Sunderland midfielder for the vacant role.
What is a Sporting Director?
The club has also created a new role, Sporting Director, and has appointed Dave Penney to the role.
McGill said that the new managerial ‘structure’ could make City a stronger club in the future.
Quakers wish Gray 'best of luck'
Darlington FC has issued a statement confirming the departure of Martin Gray.