The Galbally native had a stint in Brian McIver’s Derry management team after being part of James McCartan’s backroom team when Down reached the 2010 All-Ireland.
After a stint as Galway coach, Tally worked as Down manager between 2019 and 2021 before taking on the Kerry role after O’Connor’s return to the Kingdom post.
In September, Tally committed to Kerry again for 2025 but in a new performance coach role with Cian O’Neill having being appointed as head coach in O’Connor’s management team.
Derry are believed to have made a number of overtures to Tally in recent months and it appears that he now has been convinced to take on the job.
The Oak Leafers are the only county not to have named a manager for the upcoming season in advance of the official collective return to inter-county training on 7 December.
Previous boss Harte stepped down as Derry manager in early July after one season in charge following the county’s All-Ireland quarter-final exit at the hands of Kerry.
Harte, a shock appointment 14 months ago, guided the Oak Leafers to a National Football League Division One title but oversaw a difficult championship campaign.