 Penney joined Darlington in 2006 after five years in charge of Doncaster
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League One side Oldham have confirmed Darlington boss Dave Penney as their new manager on a two-year deal.
Penney replaces Joe Royle, who took temporary charge of the Latics in March after the departure of John Sheridan.
On Tuesday, former Everton boss Royle announced he was to leave Boundary Park after failing to win in eight games in his second spell in charge of the club.
Penney resigned as Quakers boss earlier on Thursday after almost three years in charge of the administration-hit club.
The Latics will not owe Darlington any compensation because of the League Two side's financial situation.
Oldham managing director Simon Corney told the club website: "We are delighted to be able to welcome a manager of Dave's calibre to Boundary Park.
"He is a very professional and thorough person who ticked all the boxes and who has an excellent track record."
Penney guided Doncaster from the Conference to League One, the club's highest league position for 50 years.
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606: DEBATE
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He left in August 2006 and was appointed Darlington boss two months later.
Penney's Darlington have faced an uncertain future since the club went into administration and had 10 points deducted in February.
The Quakers were in contention for a promotion place this season before having their points taken away.
Meanwhile, Royle has dismissed suggestions he may have stayed at Oldham beyond the end of the season.
He told BBC Radio Manchester: "I came to Oldham specifically to see the club through nine games to buy time to find a manager.
"They needed breathing space to have a look at CVs of the managers in the frame and I was very much a caretaker.
"There is always an 'if' factor in football and if we had won six games in a row and gone into the plays-offs, who knows? But I only ever came for nine games."
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