Stephen Kenny was said yesterday to have tied up the loose ends and agreed a two-and-a-half-year deal to become the new manager of Scottish Premier Division strugglers Dunfermline.

It is understood that the agreement provides for the Dubliner to take over at the end of the league season here but that Kenny will, with the agreement of his new employers, offer to remain on with Derry City in a dual role until after the FAI Cup final. It is envisaged that he would spend most of the week leading up to the final in Derry.

Previously it had been understood that Kenny, who is apparently being advised by Eamonn McLoughlin of the agency, Platinum One, would only leave after the meeting with St Patrick's Athletic at Lansdowne Road on December 3rd and that his first game in charge would be the home league match against Celtic.

With the threat of relegation hanging over them, however, officials at the Scottish outfit are said to have been anxious that the new man be in place well before that and he is now set to be in charge within the next 10 days or so.

Speaking to the BBC yesterday Kenny insisted that a deal with the Scots had yet to be completely finalised. "At the moment, nothing has been concluded and at the moment, we are just preparing for tomorrow night's game against St Pat's," he said.

"These things can happen in your life," he continued, though, "and you have to give them proper consideration. Derry City has been a brilliant football club for many years and I've really enjoyed being here."

The comments do little to dispel the widespread belief that Kenny will leave with only public confirmation of the details to come.

Dunfermline chairman John Yorkston said on Wednesday: "We're waiting for a fax from Derry to confirm Stephen will become our new manager." But there appears to have been no obligation on the club to wait as Kenny has a clause in his contract allowing him to leave in order to take charge of a British side without the need for compensation to be paid.

This is said to be a significant consideration for the Edinburgh club who were unwilling to pursue at least one other target for the job, Livingston's John Robertson, on the basis that a package would have to be agreed with his current employers. It is also believed that former Scotland internationals Ally McCoist and Gary McAllister both rejected the Scottish Premier League club's overtures in part because there would not be money available to spend on transfers.

Contrary to previous reports it now appears that the Derry coach Declan Devine will not, initially at least, be joining Kenny at East End Park. There has already been some speculation, however, linking Kenny with a number of his current squad, amongst them goalkeeper, David Forde.

As of last night, though, Derry City were officially refusing to concede that their hopes of retaining their manager were dead. In a statement issued yesterday afternoon the club confirmed that Dunfermline wanted Kenny to become the club's manager "with immediate effect" but added that it had requested that Kenny give the matter further consideration and maintained that he was "committed to staying until at least the end of the season".

It concluded that it had made it "abundantly clear to Stephen that we do not want him to leave." Their position is not exactly surprising. In 27 months at the Brandywell he has completely revitalised the club, winning two league cups in the process and leading them to a situation this evening where, despite a disappointing loss in Drogheda on Tuesday night they are still in a chance of winning the treble.

If they are to remain in the hunt for the league title, though, Kenny knows that they need a win in Inchicore where they will take on their cup final opponents, St Patrick's Athletic.

The home side are without Dave Mulcahy and Darragh Maguire, both suspended, for the game while Stephen Brennan (back) and Keith Fahy (stomach) are doubts.

Derry, meanwhile, are set to be without Stephen O'Flynn (arm), Sean Hargan (hamstring) and Ken Oman (ankle) while there is some doubt about the fitness of Pat McCourt and Mark Farren, both of whom picked up knocks at United Park.

Meanwhile, Longford Town have Davy Byrne back from suspension for this evening's visit to Belfield Park but Alan Matthews will be without brothers John and Robbie Martin as well as former Shelbourne defender Kevin Doherty, none of whom will play again until next season, for the club's second last game of the campaign.

The hosts are missing Stephen Hurley and Alan Mahon while Keith Doyle is back from suspension but the more significant news from the club is the confirmation that under-21 international Gary Dicker will leave next week, most likely for a British club, while Alan Cawley's transfer to Waterford is set to be made permanent.

In the night's other Premier Division game Bray continue their battle to avoid finishing in last place at Bohemians where Alan Caffrey, in charge for the last time perhaps, will again have a depleted squad to choose from.

Dundalk FC have confirmed that manager John Gill has agreed to stay in the post for another year. The former Dublin City manager has signed a 12-month contract with the club.

TONIGHT'S FIXTURES

Premier Division: Cork City v Shelbourne, Turner's Cross, 7.30; Bohemians v Bray Wanderers, Dalymount Park, 7.45; St Patrick's Athletic v Derry City, Richmond Park, 7.45; UCD v Longford Town, Belfield Park, 7.45.

First Division: Athlone Town v Monaghan United, St Mel's Park, 7.45; Shamrock Rovers v Finn Harps, Tolka Park, 8.0.