Termon will be under the stewardship of Paddy McDaid for the 2019 season.
McDaid took temporary charge following the departure of Shaun Paul Barrett.
McDaid was at the helm for the relegation play-off win over Milford a week after Barrett stepped down in the wake of a disappointing group stage in the Donegal SFC.
Defeats to St Michael’s and Malin were following by a narrow win over Four Masters, on a night when Termon paid a heavy price having led a 14-point lead fade into the bare minimum.
The Burn Road residents survived relegation from Division 2 of the League thanks to a dramatic win over Sean MacCumhaills on the final night of the League season in Ballybofey.
Having preserved their Division 2 and SFC status, McDaid will hope to revive the fortunes in 2019.