Colin Malone will be in the Armagh hotseat next season

Malone took over as City manager in March 2003 and guided the team to promotion to the top-flight last year after winning the First Division title.

The news ends speculation that Malone was returning to Glenavon, who sacked him as their manager three years ago.

City survived their first season in the Carnegie Premier League but a late slump saw them finish third bottom.

Malone's team finished the campaign with an embarrassing 8-1 defeat away to Cliftonville.

Assitant manager Neil Carson will also remain at Armagh next season.