Merson lands Walsall job
Merson had been operating on a caretaker basis for The Saddlers' last four games of the season, following Colin Lee's dismissal.
Walsall lost the first three games of Merson's tenure and despite victory on Sunday, failed to beat the drop to the Second Division.
Merson had signalled his intentions to stay at the Bescot Stadium next season, irrespective of the division they found themselves and will now do so in a managerial capacity.
The mercurial midfielder will continue to play next year and will be hopeful that his influence both on and off the pitch, will help Walsall bounce back at the first attempt.