National League: Derry City's hopes of landing Pat Fenlon as successor to Stephen Kenny were revived yesterday when the Dubliner finally resolved the question of his future at Shelbourne by resigning as manager of the club.

Though it appears that he did not leave Tolka Park with a move to the Brandywell specifically in mind, his decision does reopen the door to City officials whose interest in hiring him had cooled since the end of the season because of his reluctance to commit himself to taking the post.

The club's officials had since turned their attention to Brian Kerr and sought to initiate talks with the former Republic of Ireland manager. Their preference, however, is still believed to be Fenlon because of his far more recent success in domestic management, and they are likely to intensify their efforts to hire a man who won the league title in three of the last four seasons.

Fenlon's initial reluctance to formally accept a post he had suggested he was interested in was rooted in Derry's intention that Kenny's replacement follow the now Dunfermline manager's lead by moving to the Derry area. Married with two children, the Dubliner is not keen to uproot his family and Derry's success in getting their man may depend on their ability to reach a compromise with him over the issue.

Nevertheless, there was growing confidence among those close to the club last night that Fenlon will be unveiled before the end of the week with club officials suggesting privately that they believe an appointment is imminent but declining to commit on whether they believe they are about to land their first choice for the post.

Fenlon, who informed his backroom staff of his decision to go yesterday afternoon and met most of the club's players to say goodbye last night, did not return calls but it is believed that renewed unrest among the squad as a result of the financial uncertainty at the club had prompted his decision to finally go.

A number of players last night said that the situation had, in their eyes, reached "breaking point" and representatives of their union, the PFAI, have held discussions with Shelbourne chief executive Ollie Byrne in relation to a written undertaking provided by the club back in July that players could leave on free transfers if their wages were not paid on time until the end of the season.

The players, like PFAI chief executive Fran Gavin, belief the terms of this commitment have been triggered by events since but Byrne is apparently intent on fighting the matter in the hope of keeping the bulk of the club's championship side together.

The first signs that Fenlon's departure might prompt an exodus came last night, however, with word that out-of-contract winger Ollie Cahill had completed a medical for Drogheda United although he is unlikely to sign before returning from a holiday that starts today.

Speaking on Newstalk 106 another of the club's leading figures whose current deal is up, Stuart Byrne, hinted that he too might depart. "I've been considering my own future for a while because of the uncertainties," he said. Players want guarantees (but) there is a lot of uncertainty around the club."

•Ford will take over the sponsorship of the FAI Cup from Carlsberg starting next season. Carlsberg will continue their relationalship with the FAI and have signed a new deal, worth over €2 million, for four years which will include Ireland's next World Cup campaign.