Greg O'Halloran can play in defence or midfield

Pat Fenlon, who quit Shels to take the Derry job in December, has already snapped up Dave Rogers from the Tolka Park outfit.

Republic of Ireland Under-21 international O'Halloran can play in either defence or midfield.

Fenlon is still mulling over whether to sign Shels goalkeeper Dean Delaney and he is also in the market for a striker.

Shelbourne, who won the Eircom League team in November, were demoted to the First Division earlier this week by the FAI because of their financial problems.

As a result, Derry City could become the Eircom League's representatives in the qualifying rounds of the Champions League in the summer.

Shels have until Friday to appeal against their demotion.