Moss said: "I'm delighted to have secured someone of Dean's standing.
"Initially I only asked him to give me his advice on certain aspects of the club but after long talks with him I realised that this is something he wanted to get involved with.
"His enthusiasm is infectious and it's something that really excites me and as to what he can bring to us.
Moss revealed on Wednesday that Wrexham, who have won just one of their last six Blue Square Premier games, had 18 managerial applications since Little's departure.
But admitted that Saunders, Graeme Souness' former assistant manager at Blackburn Rovers and Newcastle United, had not applied.
"I thought his position with Wales would rule him out," said Moss. "But that has been talked through with John Toshack.
"Dean is very keen to take his first managerial role and I'm looking forward to seeing him in charge at the Racecourse."
Little's former assistant Martin Foyle, who was in caretaker charge, has left the club but coach Brian Carey remains at the non-league club as Saunders' number two.
A Wrexham statement said: "Martin took on the role in difficult circumstances and the club appreciates his efforts and thanks him for all the hard work and professionalism he has shown throughout.
"He was devastated at the departure of Brian Little from the club and now feels it is time for him to also move on."
Moss is a close friend and golfing partner with Saunders, who scored 22 goals in 75 Wales caps, and he assisted the Racecourse supremo by taking striking clinics for Wrexham's misfiring forwards last season.
Saunders and his fellow Wales assistant Roy Evans, the former Liverpool manager, gave Moss their views on Wrexham's players during a bizarre training session on Tuesday.
Previously the closest Saunders came to becoming a boss was in February 2007 when he was linked with the vacant job at Swansea - since filled by Roberto Martinez.
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