Fenlon held talks with Derry City officials on Friday

Fenlon, who stepped down from the Shels job earlier this week, succeeds Stephen Kenny who left the Candystripes to take over at Scottish club Dunfermline.

Dubliner Fenlon has been given a three-year deal at the Brandywell.

It was clear from an early stage that Fenlon was Derry's preferred choice and he will be officially unveiled at a press conference on Tuesday.

Fenlon agreed a deal after holding talks with Derry club chairman Hugh McDaid and club chief executive Jim Roddy on Friday.

The new Derry boss quit as Shelbourne manager on Tuesday, less than three weeks after guiding the Dublin club to the Eircom League title.

Fenlon said that he was looking forward to working at "a highly successful and ambitious club".

The chairman and board of Derry City Football Club are delighted to have appointed a manager of such calibre Derry City chief executive Jim Roddy

Derry City chief executive Roddy also made clear his happiness at getting the man that the club clearly wanted.

Shamrock Rovers had been reported to be ready to move for Fenlon is he didn't take the job at the Brandywell.

"Pat has a wealth of Eircom League experience and the chairman and board of Derry City Football Club are delighted to have appointed a manager of such calibre," added Roddy.

Fenlon, frustrated by financial problems at Shels, was immediately installed as the Derry board's preferred successor after Kenny's departure.

The Dubliner departed from Shels after securing a third title in four years for the Tolka Park club.

Fenlon publicly hit out at the club's financial problems during the championship run-in.

He revealed that players had not received their wages during stages of this year's season.

Derry, meanwhile, got a boost on Friday when they received an extra 100,000 Euro as a result of their Uefa Cup run.

It follows a Uefa decision to award additional funds to all 80 clubs that played in the first round of this season's competition.