Former Sheffield United and Bradford City striker back in football at York City
Donaldson, who was controversially sacked as head coach of National League North outfit Farsley Celtic at the start of the autumn, scored 50 goals for the Minstermen across two spells and was a hugely popular figure in his time at the club.
The 40-year-old will oversee the formation of development side which will be competitive at the start of next season.
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Hide AdBradford-born Donaldson said: "To be back here... I'm over the moon.


"It's the perfect fit for me and hopefully I can help other youngsters come through and start their journey here as well.
"I've been there; lived it, experienced it and now it's for me to pass that knowledge down to the next generation.
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Hide AdSpecifically on his new role, Donaldson said: "It's something I've always wanted to get into.
"I've been in football 24 years so it would be stupid of me to not carry on and pass that experience on to the younger generation, and to provide that pathway into the first team.”
City director of football Tony McMahon revealed: "We had a chat with the owners and this was something we wanted to do moving forward.
"We want a development group and bringing someone like Clayton back to the football club was massive.
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Hide Ad"He's not just a football person but a good person, and that's the type of people we need in this football club.
"It's really exciting with how it's going at first team level but we want below that, development players.
"At first team level now, we have a manager in place who isn't frightened to play these younger boys.
"If we can give them a pathway now of getting into our first team, long term it saves us money but it's brilliant for these younger players to see that pathway to the first team."
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