Rodney McAree quit as Dungannon Swifts manager on Friday because he does not have the required 'A' licence to continue in the job.
"After Rodney was appointed caretaker manager, we were made aware that his 'A' licence had lapsed," said the club.
"Consequently he would not be able to take the job permanently until this situation was remedied."
Darren Murphy takes over as head coach to the end of the season, with McAree back as first team coach.
The County Tyrone club added that the the situation will be reviewed at the end of the season.
McAree was less than two months into the job, with the former Swifts player replacing Dixie Robinson at Stangmore Park.
Dungannon are second from bottom in the Premiership and level on points with basement club Carrick Rangers.
Murphy, who was assistant to McAree, will take charge for the first time in Saturday's Irish Cup sixth round game against Amateur League side Newington YC.