Dundalk have emphasised that Ciarán Kilduff remains the "right person" to lead the club amid reports that the former forward will quit as manager less than three weeks after securing the club's return to the SSE Airtricity Men's Premier Division.
The Louth side also said that shareholders Chris Clinton and John Temple "have entered into mediation discussions regarding the club's future" in a bid to secure a Premier Division licence for next season.
The Lilywhites suffered relegation from the top flight in 2024 after enduring serious financial issues that threatened the existence of the club.
But they regrouped in the second tier for this season and Kilduff took charge ahead of their First Division campaign, ultimately leading them to automatic promotion.
Since they sealed a return to the Premier Division earlier this month, there has been uncertainty regarding the former Athlone Town women's head coach's future with ongoing budget constraints at the club.
The Examiner had reported that Kilduff informed the club this week of his decision to part ways and has already been linked with the Waterford vacancy, where Matt Lawlor is currently the interim manager.
However, Waterford have moved to quash suggestions that they are on the verge of appointing any candidate.
"Waterford FC would like to clarify no offer has been made to any candidate for the First Team Manager position. The recruitment process remains ongoing and will be concluded at the end of the current season," the club said.
"We have been excited by the quality of applicants for the role and will provide a further update in due course.
"Our full focus now is on supporting Matt Lawlor and the squad as we work together to secure our Premier Division status. The club's board, staff, players and supporters are united in this effort."
Meanwhile, Dundalk have yet to officially confirm Kilduff's departure and in a statement on Friday afternoon, the club said that they were aiming to finalise a framework that would give the Kildare native the backing he needs to fulfil his role.
"Dundalk Football Club's shareholders acknowledge the vital role of our supporters, volunteers, sponsors, players, and staff at this important juncture for the club," the club said.
"In the best interests of Dundalk FC, shareholders Chris Clinton and John Temple have entered into mediation discussions regarding the club’s future and, crucially, the securing of a Premier Division licence for the 2026 season.
"The club remains fully committed to its ambitions on and off the pitch and is confident that Ciarán Kilduff is the right person to lead the team into the 2026 Premier Division campaign. Both Chris and John are working together to finalise an agreement that supports Ciarán and strengthens the long-term future of the club.
"We ask for the continued patience and understanding of our supporters during this period. Further updates will be provided in due course, most likely over the coming week."
Temple rejected an ultimatum last week to relinquish his 65% majority stake to the minority, US-based shareholders, describing the call as "not a reasonable offer" and the boardroom standoff has impacted Kilduff and his management team.
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