The move was announced by sporting director Jim Magilton earlier this afternoon.
Rathdowney's Shane Keegan is stepping into the role of manager at Dundalk with Fillipo Giovagnoli switching to a coaching position.
The Italian was appointed as Vinny Perth's successor last season but a lack of a PRO license saw UEFA fine the Louth club €50,000 during the Europa League Group Stages.
New sporting director Jim Magilton doesn't want a repeat of that, but is adamant that team selection will be a collaborative process.
Giovagnoli and assistant Giuseppe Rossi have applied attain their 'PRO' and 'A' badges but it could be 2022 before either is able to find a place on a coaching course.
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