Martin O'Neill has signed a new one-year contract as Celtic manager with the option for a further season, the club have announced.

The 74-year-old returned to Celtic Park twice last season and ultimately led the Hoops to a league and Scottish Cup double.

O'Neill told Celtic's official website: "It is once again a great privilege for me to continue as Celtic manager.

"Last season will live long in all our memories and to be part of that success has in a big way whetted the appetite to work again for more days like those and bring our supporters those moments."

It means Robbie Keane misses out on the role, despite holding talks with majority owner Dermot Desmond.

O'Neill, who had previously been out of management since leaving Nottingham Forest in 2019, said after pipping Hearts to the title on a dramatic final day that the campaign had "taken its toll" on him, although he had never fully closed the door on staying on.

The emergence of Keane – who left his role as Ferencvaros boss last month – as the main alternative to O’Neill had been met with hostility among some supporters.

The 45-year-old, who had a fruitful 16-goal loan stint at Celtic in the first half of 2010, was heavily criticised in Ireland for choosing to stay in Israel as manager of Maccabi Tel Aviv following the outbreak of war in Gaza in 2023.

Celtic supporters are traditionally aligned with Palestine and a large number of supporter groups opposed his appointment.

Keane has just completed a 17-month stint as boss of Ferencvaros, where he won the title in his first season and then finished second behind Gyor in his only full campaign at the helm.

The former Wolves, Leeds, Tottenham and Liverpool forward led the Hungarian side to the last 16 of the Europa League, where they were eliminated by Braga in March.

O'Neill has won the race to manage Celtic next campaign.

Confirmation of O'Neill's appointment came hours after reports had claimed the news had been delayed amid uncertainty over his backroom staff.

Assistants Shaun Maloney and Mark Fotheringham were reportedly offered wage cuts to remain part of O’Neill‘s coaching team.

There was no mention of other coaching staff in the club announcement.

The Hoops will play in Dublin early in pre-season against Shelbourne in Tolka Park.

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Source: RTE