National League / Derry 0 UCD 2 Dermot Keely sensationally resigned as manager of Derry City following last night's surprise defeat by UCD at the Brandywell.

The Dubliner, who failed to win a league game in seven outings, joined the Northern club in late july.

Confirming the news Derry City chairman Jim Roddy issued a statement: "Dermot Keely has resigned as manager of Derry City. The board of directors have reluctantly accepted his resignation. Dermot has told us he believes he hasn't got what it takes to turn Derry's difficulties around."

Derry City now lie just two points clear of UCD in the Premier Division basement.

The students were deserving of their half-time lead. Peter Hutton's failure to find his goalkeeper with a headed back-pass allowed Alan Gallen to nip in to score from 16 yards in the 28th minute. Derry had the ball in the UCD net in the 34th minute but Michael Holt had fisted home, an incident which brought the striker a yellow card.

Five minutes after the break UCD's Gallen gained possession on the right and his low cross found John Martin who drove the ball past Alan Gough.

In the 63rd minute Holt failed to turn a cross from Gareth McGlynn into the UCD net as Patrick Jennings made a fine block. Two minutes later Derry went close again when Coyle curled a shot narrowly over the crossbar. UCD could have added a third through Gallen but he overran the ball and Gough gathered.

DERRY CITY: Gough; McCallion, Hutton, Simms, Hargan; McGlynn, Martyn, Doherty, Hedderman; Holt, Beckett. Subs: Coyle and Friars for Beckett and Hedderman (both half-time); McLaughlin for Martyn (64 mins).

UCD: Jennings; Sullivan, McAuley, McNally, Ryan; J Martin, Griffin, Cawley, O'Donnell; Rooney, Gallen. Sub: Davey for O'Donnell (88 mins.)

Referee: J McDermott (Dublin).