Neil Lennon’s absence from the dugout has been confined to just six months after the Northern Irishman was confirmed as the new manager of Bolton Wanderers.

Lennon, who will be introduced on Monday, signed a three-year deal with the Bolton club that sit at the foot of the Championship. The news may be a disappointment to Fulham who, it is believed, had identified him as a leading candidate for their vacant managerial role.

After initial talks last week, the former Celtic manager accepted his new position after discussions with Bolton’s owner, Eddie Davies, and the chairman, Phil Gartside, on Saturday. Steve Clarke, the former West Bromwich Albion head coach, and Chris Hughton, who was sacked by Norwich City last April, were the other leading contenders for the post which was vacated by Dougie Freedman at the beginning of October.

“Following a process of first- and second-interviews with a shortlist of initial candidates a unanimous decision was taken by Eddie Davies, [vice-chairman] Brett Warburton and Phil Gartside,” said Bolton in a statement. “The club are delighted and excited to appoint Neil Lennon. He brings with him experience at the highest level and an infectious enthusiasm to take the club forward.”

Lennon left Celtic in May after four years in charge of a club he had earlier captained, and having won three titles in a row as manager. He believed he had taken Celtic as far as he could, and he was also increasingly disillusioned with the Scottish football scene. The 43-year-old’s coaching staff, Johan Mjallby and Garry Parker, will join him at Bolton.

The club statement added: “The extensive list of high-calibre applicants demonstrated how those candidates viewed the opportunity to manage the club, even in its present position at the bottom of the Championship table.”

Reports at the end of last week claimed Lennon was on the verge of taking up a lucrative coaching position in Saudi Arabia with Al-Ittihad. Lennon did not, as was claimed, travel to speak with them as Bolton’s interest in his services became more serious.

Lennon’s initial task is to improve Bolton’s league position after only one win in 11 league games. He is unlikely to be handed vast transfer sums, with the club still counting the cost of overspending before relegation from the Premier League in 2011-12. Bolton have not reached the play-offs during the intervening seasons and that, coupled with a dismal start to this campaign, was the trigger for Freedman’s departure.

Bolton have lost their past five matches, four in the league and one to Chelsea in the Capital One Cup. Lennon’s first game in charge will be at Birmingham City on Saturday.