John Gregory has stepped down as Crawley manager with immediate effect for medical reasons.

Dean Saunders has been appointed as interim manager at Crawley with Gregory, 60, due to have open heart surgery at the beginning of January.

Reds had lined up Saunders a few weeks ago since the extent of Gregory’s health problems became apparent and the former Albion striker will take charge of the team for the first time against Colchester United at home tomorrow.

The pressure had grown on Gregory in the last few months as results deteriorated but Crawley have made it clear that the departure of Gregory had nothing to do with performances on the pitch.

Crawley slipped into the relegation zone for the first time when they suffered a fourth successive defeat in League One at fellow strugglers Leyton Orient on Boxing Day and Saunders has been tasked with the short-term goal of turning the club’s fortunes around.

Saunders - who has been out of work since being sacked by Wolves following their relegation from the Championship in April 2013 - will be responsible for every aspect of the playing side including coaching, player recruitment and scouting but has not been confirmed as permanent manager.

The 50-year-old enjoyed a successful playing career which featured spells at Albion, Derby, Aston Villa and Liverpool before moving into coaching as assistant manager at Blackburn, Newcastle and the Wales national team.

Saunders was given his first managerial role by Wrexham where he spent three years in charge but was unable to earn them promotion back to the Football League.

He took over from former Crawley boss Sean O’Driscoll at Doncaster Rovers in September 2011 but was unable to prevent them from being relegated from the Championship in his first season in charge. Saunders had guided Rovers to the summit of League One the following season when he left to take over at Wolves.