Celtic appoint Deila their new man in charge at Parkhead. GettyImages

Celtic have confirmed the appointment of Ronny Deila as their new first team manager.

The 38-year-old has signed a 12-month rolling contract at Parkhead and will replace Neil Lennon, who stepped down as manager after four seasons in charge last month.

The SPL champions have agreed a compensation package with his former club Stromsgodset, whom Deilia led to the Tippeligaen title last season.

"It is a magnificent honour to be named the new manager of Celtic, one of the world's great football clubs and a club I have such enormous respect for," Deila told the club's official website.

"I will treasure this opportunity and will give everything I have to achieve success for Celtic and our wonderful fans.

"I know what I want for Celtic and our supporters and that is the best of everything, it is what our fans deserve. I want to deliver the best attacking, exciting and entertaining football we can play, for the players to give their best every time they take to the field of and, of course. I want my players to work with me to achieve the best results possible and bring trophies to Celtic."

Deila took over Stromsgodset in 2008 following his retirement as a player and led the side to victory in the Norwegian Cup in 2010 before last year's triumph which saw the club win their domestic crown for the first time since 1970.

"We are delighted to have secured Ronny as Celtic manager," club chairman Ian Bankier added. "He is a highly-regarded individual and a man who we are confident will bring great success to Celtic.

"He is a forward-thinking coach and manager with a progressive approach. The Celtic Board will support Ronny fully and in every way and we look forward to working with him."

Celtic legend Henrik Larsson emerged as an early candidate to succeed Lennon but while the former striker admitted he could see himself managing the club in the future, he insisted his focus remains on current club Falkenbergs.

Roy Keane appeared the favourite to take the job last week after holding talks with the club but the former Manchester United skipper has opted to remain the Republic of Ireland's assistant manager. Keane is also poised to accept an offer to assist Paul Lambert at Aston Villa but would be able to carry on his duties alongside Martin O'Neil in the Irish set up.