Stephen Kenny was sacked by Bohemians last month

Kenny, who was sacked by Bohemians last month, has been given a two-and-a-half year deal by the Brandywell outfit.

Peter Hutton had been in caretaker charge of the club since the departure of Gavin Dykes in May but did not want the job on a permanent basis.

Kenny will take charge of the Candystripes in Thursday's Carlsberg FAI Cup against Shelbourne.

Derry made a steady improvement under Hutton and are now clear of relegation trouble.

Kenny confirmed that his family will relocate to Derry.

The new Derry boss was sacked by Bohemians a day after the Dalymount Park club crashed out the Uefa Cup, losing 3-1 at home to Levadia Tallinn.