Ward will take charge for Carlisle's game against Millwall

Ward will replace caretaker boss Greg Abbott, who has been in charge since Neil McDonald was sacked in August.

"We welcome John to his new role and wish him continued success," read a statement from Carlisle.

Assistant manager Keith Downing will take charge at Cheltenham, who have agreed a "substantial compensation deal" with their League One rivals.

Interview: Carlisle United boss John Ward

Interview: Carlisle United owner Fred Story

606: DEBATE Your thoughts on Ward's appointment

Ward said: "Carlisle made an approach 18 months ago and that was well notified but it didn't interest me at that time. I wanted to continue at Cheltenham.

"But now it's changed. Carlisle have come with an ambition to try and push their club a stage further.

"There is a potential at Carlisle that the owners want to exploit and it's a little above where I am at the moment but I'm looking forward to another challenge."

Ward joined the Robins in 2003 and lead the club to promotion into League One last season.

However, his last game in charge was the 3-0 loss to Port Vale on Tuesday, a result which leaves Cheltenham languishing one place from bottom in the league.

However Carlisle are confident the 56-year-old can sustain their hopes for promotion into the Championship.

We have agreed a substantial six-figue compensation sum for Ward's departure Cheltenham chairman Paul Baker

"John Ward will bring to Carlisle United the experience that is needed to push the club forward in future years, and build on the very solid base that has been established," read the club statement.

Cheltenham chairman Paul Baker has revealed that the club have agreed a "substantial six-figure" compensation package from Carlisle following Ward's exit.

Ward was 15 months into a five-year contract before leaving for the Cumbrians and Baker says the money will be used to strengthen the squad.

He told BBC Radio Gloucestershire: "It's a confidential figure between the clubs and is a six-figure sum.