It comes after Mark Hughes was fired for leaving the Bantams in 18th place in the table and was relieved of his duties tonight.
Bradford has won just three of their first 11 games this season after the 59-year-old led them to the playoffs last year.
McDonald has been appointed interim player-manager. The former Claret made more than 50 appearances for the team between 2008 and 2011.
We would want to take this opportunity to thank Mark and [assistant] Glyn Hodges for their work and services to our football club over the previous 19 months, said Bradford CEO Ryan Sparks.
They had a significant impact on the team both on and off the field when they first joined, and last season we almost achieved our goals.
“Unfortunately, results have been disappointing since we lost to Carlisle in the play-off semifinal, and after 11 league games, we find ourselves far from where we expect to be.
“So, in an effort to get our season back on track, the decision has been made to move in a different direction.”Personally, I have thoroughly liked working with Mark and Glyn, and we part ways on cordial terms.
As we think back on some of the priceless moments they gave us, I’d want to invite supporters to join me in wishing them and their families the very best for the future.
The Bantams claim that the hiring process for Hughes’ long-term replacement is already under way and that an announcement will be made soon.