Dean Saunders handed the task of reviving Wolves

Dean Saunders: The Doncaster manager finds his team adrift at the foot of the Championship (Getty Images)

Dean Saunders has been named Wolves manager, taking over from Stale Solbakken, who was sacked on Saturday night after a poor run of form ending with the 1-0 FA Cup third-round defeat to non-league Luton Town.

Saunders leaves Doncaster Rovers, joint top of League One, and the club's chief executive Gavin Baldwin said last night: "I have just come off the phone with Wolverhampton Wanderers' chief executive Jez Moxey and can confirm that Dean Saunders has agreed to take over as manager at Molineux. We have agreed a good deal for Doncaster Rovers. Work has already started on trying to find a replacement for Dean and continue our push for promotion back to the Championship."

Yesterday's FA Cup third-round defeat to Luton proved to be the final straw for a Wolves board who have watched Solbakken fail to get a side relegated from the Premier League last season back on track.

With just three victories in 16 they languish in 18th place in the Championship, with the club describing results as "hugely disappointing".

Saunders is Wolves' fourth manager in less than a year after the departure last February of Mick McCarthy and the brief tenure of Terry Connor.

A former Liverpool and Aston Villa player, Saunders got the Doncaster job after Sean O'Driscoll was sacked last season.

Elsewhere in the Championship yesterday, O'Driscoll, sacked by Nottingham Forest on Boxing Day, confirmed he had rejected the chance to take over at Barnsley.

Luton, meanwhile, must deal with the consequences of success. They have failed in the Conference play-offs for the past three seasons and desperately require the momentum shift of a return to the Football League. They play the first of four games in hand tomorrow, at home to Barrow.

Paul Buckle, the manager, said: "It's crazy. I'm trying to instil a winning mentality at the club and want to go for everything, but the squad isn't big enough to cope."