Grayson has paid the price for Saints' dismal league campaign

Grayson will take on the role of backs and skills coach while ex-Auckland boss Peter Sloane steps up from assistant coach to become head coach.

The club will bring in a director of rugby and is on the lookout for a "world-class coach" to fill the role.

"A shortlist of candidates is being compiled," said chairman Keith Barwell.

"We have had some extremely positive conversations with several world-class coaches.

We maintain our belief in the potential of Paul Grayson as a coach for the future Saints chairman Keith Barwell

"It is important, however, that there is no delay in our preparations for the coming season whilst our search for a director of rugby proceeds.

"In Peter Sloane, who we have appointed head coach, we already have someone with great experience.

"We believe he will immediately give us a harder edge and help us to achieve our immediate objective of getting straight back to the Premiership."

Despite demoting Grayson, Barwell insisted the former England fly-half had a bright future in coaching.

"We maintain our belief in the potential of Paul Grayson as a coach for the future but accept his appointment as Saints head coach was premature despite his success in the second half of the previous season," said Barwell.

Defence coach Frank Ponissi and technical analyst Paul Larkin are leaving the club as part of the re-organisation.

Saints chief executive Allan Robson said they were determined to keep their big-name stars at Franklin's Gardens.

"The board feel it is important to keep the core of the side together," said Robson.

"The players have been told we will honour all existing contracts and expect the same loyalty in return.

"Their response has been outstanding and we are confident that with our new signings strengthening the squad even further, our new coaching team will get us off to a great start."