It comes just 24 hours after the Candystripes parted company with Declan Devine by mutual consent.
Club Chairman Philip O’Doherty said in a statement on Friday morning: “We would like to put on record our thanks to Jonathan Hill FAI CEO and Stephen Kenny First Team Manager of the Republic of Ireland, in granting permission for us to speak to Ruaidhrí.
“We hope our fans will get behind the new Management team as we face Sligo Rovers on Saturday evening.”
Higgins has been appointed on a three year contract as First Team Manager.
Limavady-born Higgins (36) has a strong relationship with his local club.
He spent nine seasons there as a player in two different spells.