Former York City manager Neil Thompson has accepted the manager's post at Scarborough.
Thompson, who has been caretaker player-manager at the McCain Stadium since the departure of Colin Addison is to sign an 18-month deal.
Chairman Trevor Milton emerged from a lengthy board meeting to say: "I am delighted that he is the new manager and we are looking forward to the future.
"Neil knows that he has an exciting side in waiting in the junior ranks and I am over the moon that he has accepted the job".
Thompson has been told to cut the hefty wage bill at the club and is under no illusions about the difficulty of the job he now has on a permanent basis.
"It's going to take time to build this club up again and it's not going to happen overnight. There are bound to be some changes over the next 18 months, but it's a great challenge and it's something I am really looking forward to.
"We have got to plan for beyond this season if we can and with the financial restrictions it is not going to be easy.
"We have a lot of good players here and a lot of young players waiting in the wings and if we can get things on a good footing and move forward after what the club has been through, then that will be significant progress - but my first priority is to get a result at Hednesford on Saturday."
Thompson's team have not won for ten games, but there has only been one defeat in the last six league games.
He will persevere with on loan Phil Priestley in goal despite his nightmare debut last week when he gifted both goals to Yeovil in a 2-2 draw
"That was just one of those games and he gets the chance to show us what he can really do" said Thompson.
Senegal-born striker Cherif Diallo, who has scored four goals in his last five games will be talking to Thompson over the weekend with a view to signing a permanent deal with the club and he will continue in attack alongside Steve Brodie in an unchanged side.
Scarborough: Priestley, Betts, Rennison, Ellender, Thompson; Stoker, Williams, Ingram, Pounder; Diallo and Brodie. Subs: Woods, Gildea, Shuttleworth, Windross, Brunton.
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