Mr McAllister, 37, succeeds long-serving manager Patrick Kelly, who has stood down after 14 years in charge. Mr Kelly will, however, remain with the club in a new role on board a football steering committee.

Pat McAllister has served as assistant manager to Patrick Kelly since 2007, following 20-year playing career that included one season with Donegal Celtic and spells at Dunfermline, Cliftonville, Coleraine and Newry City. This is his first appointment as a manager in Irish League football.

Mr McAllister said: "This is a massively exciting job for me and I am proud that my first opportunity to manage is with Donegal Celtic. "I would not have taken the post without Paddy Kelly's blessing. I have tremendous respect for what he has achieved with the club and the fact that he will remain to help progress football is a benefit to everyone. If I need his advice, and I am sure there will be times when I will, it's good to know he will be there for me."

Mr Kelly, who guided Celtic to the Premier League for the first time in the club's history in 2005, said: "I would not have stood down if Pat McAllister had not accepted the job; it was my condition that he was the next man in charge. When I brought him to the club we discussed this transition and now that it has come about I am excited for Pat and for the club.

"I had 14 wonderful years as manager but it is for a fresh approach and I am ready for the new challenge of supporting the team in terms of raising funds and supporting Pat McAllister when he needs me. I think the club has secured one of the best up-and-coming managers in the local game and I have no doubt he will be a massive success with Donegal Celtic."

In other positive news for the club, skipper Stephen McAlorum has agreed to remain despite interest from several Premiership clubs.