Celtic moved quickly to take O’Neill back after his successful interim spell before Nancy’s appointment.

The pair both had eight games in charge and contrasting fortunes. The 73-year-old won seven matches, while Nancy lost six.

The former Republic of Ireland boss said on Celtic’s website: “I am really pleased, in fact, very honoured to be asked back to manage the team again and I am looking forward to getting back to work again with the players.

“I know we would all have hoped for things to have worked out differently under Wilfried and I personally want to wish him good luck with everything he does in the game. He is a fine man and I am sure he will go on and achieve success again, I have no doubt of that.

“For me, I’ve been asked to take this great job on again and my focus will be to try and get us back to winning ways if we can. We will need everyone right behind us.”

O’Neill’s return was confirmed four hours after Celtic announced they had terminated Nancy’s contract, 33 days after he arrived from Columbus Crew.

Head of football operations Paul Tisdale also left his position in the wake of Saturday’s 3-1 home defeat by Rangers.

Fans had protested against the board after Saturday’s derby defeat and interim chairman Brian Wilson accepted the managerial change would not complete the measures required to mend relationships.

“The way things worked out for Wilfried Nancy is an intense disappointment, not least from a purely human perspective,” Wilson said. “We wish him and his family well.

“By bringing Martin back to the club, we look forward with confidence, giving the team real focus for the challenges ahead. He is a manager the players, staff and supporters know well, with a peerless reputation in football and a deep commitment to Celtic.

“The immediate priority is to get back to winning ways and while today’s events do not address every issue, I would appeal for unity within the stadium to create the best possible environment for the manager and team to launch the fightback.”

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Nancy’s departure had seemed inevitable from very early on after his decision to transform the team’s formation and persist with a three-man defence backfired in spectacular fashion.

The Frenchman oversaw wins over Aberdeen and Livingston after a four-match losing streak – Celtic’s worst since 1978 – but the William Hill Premiership champions were then well beaten by Motherwell before conceding three goals in 21 minutes against Rangers.

Celtic shipped 18 goals in eight games, one more than they conceded in the first 24 games of the season.

After losing the Premier Sports Cup final against St Mirren and suffering a 3-0 home defeat by Roma, the board have acted in a bid to rescue their title defence and hopes of Europa League progression.

Celtic are second in the table, six points behind Hearts and level with Rangers. They were level with Hearts with a game in hand when Nancy took over.

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Tisdale’s departure will also be welcomed by supporters. The former Exeter manager oversaw two transfer windows where Celtic sold main strikers Kyogo Furuhashi and Adam Idah and failed to sign adequate replacements.

Tisdale, who had Nancy’s assistant Kwame Ampadu as a player and coach at Exeter, was seen as the man behind the Frenchman’s appointment.

O’Neill has reassembled his backroom staff after Ampadu, Jules Gueguen, and Maxime Chalier also left.

Shaun Maloney and Stephen McManus again step up to first-team duties, while Mark Fotheringham returns to join Gavin Strachan, goalkeeping coach Stevie Woods and analyst Greg Wallace.