Des Hasler will retain his position as head coach of Manly next season but will be replaced by his assistant Geoff Tovey in 2013.
Pressure had been mounting on the Sea Eagles board to sack Hasler after he announced he would be taking up a four-year role with Canterbury.
But instead he will remain in charge for one final season, before heading to Belmore.
It has been a bittersweet few weeks for the Sea Eagles who after claiming their eighth premiership with a Grand Final victory over the Warriors, have had to cope with Hasler’s decision.
In addition, influential winger Will Hopoate signed lucrative deal with the club’s bitter rivals Parramatta starting in 2014.