Sammy Lee has been appointed Bolton manager, a day after Sam Allardyce quit.
Lee was Allardyce's assistant at Bolton from June 2005.
He also worked as an assistant coach with England from 2001 until leaving after the 2006 World Cup.
The 48 year old Lee begins immediately, taking charge of Bolton's last two games of the season against West Ham and Aston Villa.
"I'm very proud and I mentioned at the weekend I've been fortunate to work under some very good people," Lee said.
"The education I've gained from working with Sam Allardyce has been immense.
"I have to continue what Sam has started, that's first and foremost, and then re-evaluate it after that. It certainly is a healthy position that Bolton are in, we're now contesting for a place in Europe."
Bolton is in fifth place in the Premier League and set to clinch a place in next season's UEFA Cup.
Lee played 14 times for England.
As a midfielder, he played 197 games for Liverpool between 1976 and 1986, winning two European Cups, three league titles and four League Cups.
He also played with Queens Park Rangers, Spanish club Real Osasuna and English clubs Southampton and Bolton.
Lee began his coaching career in 1993 as a reserve-team coach at Liverpool.
He was appointed first-team coach in 1999 under manager Gerard Houllier and in 2001 helped Liverpool win the UEFA Cup, League Cup and FA Cup.
Lee turned down the chance to be manager of England's under-21 side in August 2006 to concentrate on Bolton.
Allardyce resigned Sunday after eight years in charge of Bolton. He reportedly is in line to take over at Manchester City or Newcastle.
Allardyce dismissed the reports as speculation, and said he was set to have a vacation with his family.
"It is time for Sam Allardyce to take a break," Allardyce said, as he oddly referred to himself in the third person.
"You make big decisions in everyday life as a manager, it's one of the biggest decisions I've ever made and once I've made a decision I stick to it."
Bolton chairman Phil Gartside said Allardyce did not resign because of a lack of money to buy players.
Bolton has finished in the top 10 of the Premier League for the last four seasons.
"To move from being a top-four club from a fifth-placed club is not ($19.9 million), it's about ($199 million; ¤146 million),'' Gartside said.
"We've done well to achieve what we've achieved with limited resources."
Gartside said the club had discussed the future last year when Allardyce was shortlisted for the job as England manager, which went to Steve McClaren.