Adrian Heath will be Reids assistant manager at Highfield Road.
"It's a great opportunity for me at a club that wants to go forward," Reid said, at todays pres conference.
"I know what the finances are like, but I'm looking forward to it.
"I'm delighted to be here, although it's a surprise to come in so quickly.
"I have to try and get the club out of this league into The Premiership, it's a challenge but I'm delighted to have the opportunity."