Wigan Athletic have announced that Dave Whelan has resigned as the club’s chairman, with his 23-year-old grandson David Sharpe replacing him in the role.

The 78-year-old, who bought the club 20 years ago, will continue to own the club but will no longer have a hands-on role.

In a statement on the club’s official website, Whelan said: “The time has now come to hand over the reins. I am approaching 80 years old and spend an increasingly long time abroad, and cannot make it to games.

“It is a decision I have been mulling over for some years and I believe David is now ready.”

Whelan was given a six-week ban from all football-related activities by the FA in December for comments he made regarding Jewish and Chinese people.

He was also landed with a £50,000 fine.

The Wigan chairman made the remarks in a newspaper interview defending his decision to appoint Malky Mackay as the club’s new manager.

Mackay is the subject of an investigation into alleged racist and anti-Semitic texts sent while he was in charge of Cardiff.

Whelan has now decided to leave his role as chairman, and believes his grandson is ready to take on the responsibility.

Latics have confirmed that the club’s board of directors will appoint Sharpe as chairman in the near future, with chief executive Jonathan Jackson assisting him in running the club.

Whelan added: “Contrary to some suggestions, there are no plans to sell the club, which will remain in family hands and I have every confidence that David, along with chief executive Jonathan Jackson, will lead us forward with wisdom.

“In making this announcement, I would like to say huge thank you to the board of directors, all the staff at the club, and of course the wonderful supporters of Wigan Athletic, who have helped make the journey over the past 20 years such an exciting and memorable one.”

Wigan went from strength to strength under Whelan, rising from English football’s fourth tier to the Premier League under his stewardship.

Everton manager Roberto Martinez, who enjoyed the closest of relationships with Whelan during his four years in charge at Wigan and won the FA Cup in his final season at the club in 2013, admitted the news had come as a surprise.

“It is a shock. I wasn’t expecting that news to be broken to me,” he said.

“I don’t know the reasons behind it, all I can comment on is the incredible contribution he has made in the game.

“I have been privileged to see first-hand how a successful and driving footballing man has given so much to the town and has created an incredible example for football.

“Any club could have the dream of playing in the Premier League and winning a major trophy and he showed the way to do that.”