MARTIN O'Neill will take charge of his first full day as Sunderland manager today with outgoing caretaker Eric Black warning him that he has significant problems to address.

O'Neill, who was confirmed as Steve Bruce's successor on Saturday afternoon, will be formally unveiled at a press conference tomorrow after watching yesterday's 2-1 defeat to Wolves from the directors' box at Molineux.

Sunderland looked like claiming a much-needed victory when Kieran Richardson fired them into an early second-half lead, but after Seb Larsson missed a penalty, Steven Fletcher's late double dumped the Wearsiders to within a place and a point of the bottom three.

O'Neill's immediate priority is to guide them away from trouble, and having signed a three-year contract over the weekend, the Northern Irishman will now turn his attention to Sunday's crucial home game with fellow strugglers Blackburn Rovers.

He watched his new players train on Saturday morning, but was not involved in Black's team selection. Nevertheless, he watched the whole of yesterday's game alongside Steve Walford, who is expected to be appointed as his assistant, and Seamus McDonagh, who was his goalkeeping coach at Celtic.

He witnessed a display that was typical of so many of Sunderland's performances this season, with a decent position being squandered through a combination of missed opportunities, poor defending and fragile confidence.

“Martin will have seen the strengths that we have,” said Black, who is expected to leave Sunderland's backroom staff as part of O'Neill's reshuffle. “I think he knows there are some good things to take forward, but I think he'll also know that there are some problems. I'm sure he'll start trying to rectify those problems this week, and I'm sure he'll be able to start turning things around.

“I'm confident there's enough quality in that dressing room to turn things around. The players that are here are all of good quality, but the obvious issue is that we could do with someone to score a goal.

“We need someone to find the back of the net more regularly when we have possession of the ball. When we have good periods in the game, we don't always score the goal that we need. If we take more chances, it puts pressure on the other team. Unfortunately, those type of players are quite elusive but I'm sure Martin will be doing everything he can to try to find one.”

O'Neill travelled to Wearside on Friday evening to conclude his discussions with former chairman Niall Quinn, and is expected to take charge of a debriefing session at the Academy of Light training ground later today.

He won trophies with Leicester City and Celtic, taking both clubs into Europe, and achieved three successive top-six finishes before leaving Aston Villa.

“I think I have always had a great enthusiasm for the game and I always feel as though I am ready,” said O'Neill. “I suppose time will tell, but I think that I am ready and I want to do it.

“It's not to try and earn any sort of Brownie points, but Sunderland were my favourite team as a boy. Where I came from in Northern Ireland, you had two, either Celtic or Rangers, and obviously I was a big Celtic fan at that stage.

“But all my school pals took on English teams and it was Sunderland for me because of Charlie Hurley and I have remained a supporter ever since. That aside, it is a massive club. They are very passionate up there and I would love to do well.”

Having overseen Bruce's departure on Wednesday, Ellis Short wasted no time appointing his preferred choice of replacement.

O'Neill was first approached on Thursday morning, and once the 59-year-old outlined his desire to move to Wearside, no alternative candidate was considered.

It is understood that a preliminary January budget has been discussed, with O'Neill now having four weeks in which to assess the current members of the squad to determine where improvements are required.

Short is determined to offer as much support as possible, and having only played a peripheral role in Bruce's arrival, the Irish-American can be satisfied with his efficient and speedy appointment of O'Neill.

“Martin has as good a managerial pedigree as you could wish to find and has proven over the years to be a very astute, top-level manager,” said Short. “During his time at Aston Villa he established the club firmly in the top ten of the Premier League year on year and this is something we are striving to achieve at Sunderland.

“Having spoken with Martin I know he is brimming with enthusiasm and anticipation about the challenge of taking Sunderland forward and I believe he is the perfect choice to deliver the success we all desire.”