The City directors appointed the former Wrexham manager Peter Jackson to replace Ivor Powell in February 1955. Born at Luddendenfoot, Halifax, Jackson had played for Stoke City between the Wars. He joined The Potters in 1924 from his local team Hebden Bridge. He remained at Stoke for ten years before moving to Southend United. He remained at Roots Hall only a short while before returned to Stoke as assistant manager.

He joined Wrexham in 1950. City were in danger of having to apply for re election to the league when he took over, in the event City finished 21^st and avoided that ignominy. He brought his twin sons, Peter Junior and David to Valley Parade and gave them debuts. They were to provide the backbone to the City teams throughout the time their father remained as manager.

He was responsible for bringing to the club players like, Bobby Webb, Johnny McCole, David Layne and Derek Stokes. Although he won no major titles, Peter Jackson got the club back on an even keel the club finishing no lower than ninth place in the three seasons they were in the Northern Section of the Third Division under his management. In 1958, the two Third Divisions were de regionalised and City performed well in the new Third Division.

Despite a highest finish of 11^th in 1959, City had money spinning cup runs in both 1958-59 and 1959-60 reached the fourth round and five rounds respectively. By 1960 the club were struggling to hold onto their place in Division Three. With relegation in 1961 Peter Jackson lost his job, this also signalled the end for his sons also who both joined Tranmere Rovers in 1961. Peter Jackson died in May 1986 aged 81.