QPR have appointed John Gregory as their new manager with immediate effect.

The 51-year-old former Rangers player takes over from Gary Waddock who will now work under the ex-Aston Villa boss.

Gregory, a close friend of Rangers chairman Gianni Paladini, has been out of the game since leaving the manager's job at Derby County in 2003 and takes over the club bottom of the Championship.

Paladini said: "It's a fantastic scoop for the club.

"John is a proven manager at the highest level and is very eager to get back in to the managerial game.

"He's sat down with Gary and talked everything through and the situation is perfect as we look to climb the Championship table."

Gregory, who led Aston Villa into Europe and to their first FA Cup Final in 43 years, said: "I'm back in the hot-seat and it's a huge challenge.

"QPR are very close to my heart and it's a fantastic opportunity for me.

"This is a job I can very much get my teeth into and I'm relishing the challenge that lies ahead.

"Winning matches is what matters most in the business and we aim to do that, starting against Hull on Saturday."

Waddock, who took over from Ian Holloway last season, was demoted after winning just four of his twenty-four games in charge. He is happy to still be in a job after being named Gregory's assistant.

Waddock said: "It's the right decision for the club, I'm just thankful that Gianni thinks enough of me to keep me here as assistant manager.

"I look forward to working with John, we both played together under Terry Venables and have the same work ethic.

"I'll learn a lot from him and I'm sure that this appointment will benefit the club I love. I'll learn from him too."

Waddock's spell in charge came to an end after Rangers were dumped out of the Carling Cup by lower league Port Vale on Tuesday, going down 3-2.

Despite beanpole striker Marc Nygaard's first goal of the season., Jeff Smith, Danny Whitaker and Richard Walker ended any hopes Rangers had of reaching the third round before Jamaican defender Damion Stewart headed the R's a consolation goal.

It was Rangers' second defeat of the week as they slumped to a 2-1 defeat at the hands of Colchester. last Saturday.

Chris Iwelumo and Richard Garcia put the Essex side two up before the half-time interval and despite Wayne Brown's own goal, Rangers failed to force an equaliser with Lee Cook and Nick Ward both wasting chances for the R's.