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Dublin-born Farrelly beat off competition from 21 other prospective candidates to become the Gypsies manager and will take over from August 26 with his first match in charge coming against rivals Shamrock Rovers.
Caretaker-manager Gary Howlett will be Farrelly’s full time coach having held the role on a part-time basis under Kenny for the last six months.
At 29, Farrelly will be the youngest manager in the League and with no experience in management, the appointment may be seen as a calculated risk by Bohemians.
But with top level experience in England with Aston Villa, Everton, Bolton Wanderers and Wigan Athletic, six international caps as well as all the required coaching badges, Farrelly has an impressive CV for a first-time manager.
Farrelly is also likely to slot straight into the Bohemians midfield, most likely alongside captain Kevin Hunt, while his inclusion would ensure three Ireland internationals in the Bohemians team with Glen Crowe and former Watford striker Dominic Foley also at the club.