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It is the third time he has been appointed to the role, having also been assistant to Paul Ince.
Although something of a club legend, fans are likely to slightly disappointed by the appointment, particularly as names such as Robbie Fowler were being bandied about.
Efe Sodje has been appointed assistant manager.
Askey played almost 700 games for the club, though exact figures from his early playing career are not easy to come by.
Sodje played for Macclesfield during a career that also took in Crewe.