DAVE Penney is to quit as Darlington manager and will today be appointed as Oldham Athletic's new boss.

He is to end his two-and-a-half year reign at The Northern Echo Darlington Arena to take charge of the League One side.

He had two years to run on his Quakers contract but Oldham are unlikely to pay any compensation with Darlington being in administration.

Penney, just like the players, is able to hand in two weeks' notice of resignation should he choose not to sign the latest wage deferral offer.

That means the manager is free to leave if he wishes, and his coaching staff are set to follow suit, as Penney wants to take at least two of the Darlington backroom staff to Oldham.

Assistant Martin Gray and goalkeeping coach Andy Collett are both earmarked for a move to Lancashire.

Gray, youth team coach Neil Maddison and defender Alan White will today attend Darlington's weekly press conference, but at 3pm Penney will be unveiled by Oldham at Boundary Park.

After Oldham's temporary boss Joe Royle this week announced he is to leave at the end of the season, a Lactics spokesman last night said: "The board have been considering the new appointment in the background for some time and a deal has been agreed.

"The new manager will speak to the press for the first time tomorrow."

Speculation over Penney's future has mounted in recent weeks with Bradford tagged as a likely destination.

The Leeds-based 44-year-old had said he would only make a decision on his position at the end of the season, which ends on Saturday.

Quakers complete their campaign at all-but relegated Chester City, while Oldham play at Walsall.

After being appointed as David Hodgson's successor in October 2006, Penney has taken charge of 139 league and cup Darlington matches, winning 60 and losing 45.

At Boundary Park, the former Doncaster chief replaces Royle, who was a short-term replacement for John Sheridan, who was axed in March.

During the closing weeks of the season Royle has been unable to prevent a downturn in form that ended the club's promotion hopes.

Darlington's own ambitions took a downturn in recent weeks, but for very different reasons as Quakers were put into administration.

But Penney's handling of the financial crisis has earned huge respect from Darlington supporters.

His ability to produce good performances while maintaining a togetherness within a squad that has gone largely without pay for three months is testament to his man-management skills.

Alongside Gray, Penney has spent recent weeks organising a fundraising match that takes place on Sunday at The Northern Echo Darlington Arena.

Despite failing to win promotion during his Quakers reign, Penney's reputation at lower league level has remained intact due to his relative success with Darlington on the back of his achievements at Doncaster.

A top-three place last season would surely have been claimed were it not for injuries to a number of players in the second half of the campaign.

Instead, Darlington contested the play-offs, losing to Rochdale.

They were again on course for a top three place this season until former chairman George Houghton placed the club into administration in February.

That move, which means the club's future remains in question, incurred a ten-point deduction and led indirectly to Penney's resignation.

Former Quakers assistant manager Mark Proctor has emerged as a leading candidate to replace Penney.

Proctor was number two to David Hodgson before leaving in August 2006 and is now working in the youth section at Middlesbrough, but is believed to be keen on a return to first-team management.

Youth team coaches Craig Liddle and Maddison are also sure to be keen on replacing Penney.