Colchester have confirmed Joe Dunne as the club's permanent manager following the dismissal of John Ward.
Former United defender Dunne, 39, has spent the last 16 years at the club. He had been installed as caretaker-manager for the second time following the defeat at Scunthorpe on Saturday.
Colchester owner Robbie Cowling said in an interview earlier this week that he would be keen to promote from within the club.
Mr Cowling said today: "Joe takes charge of Colchester United when the club's long-term prospects are the best they have ever been, but at a time when the short-term future is one of its most challenging."