The 38-year-old left Birmingham in January after just 15 games in charge.
Former England and Manchester United captain Wayne Rooney was appointed as the new manager of Championship side Plymouth on Saturday."Taking this role at Plymouth Argyle feels like the perfect next step in my career," said Rooney in a club statement.
David Bruce says significant investment into the Stadium of Light will help to "bring back the heart and soul" and add "personality" to Sunderland's home