Dodds had been acting as temporary assistant to his former Rangers team-mate Neil McCann as the pair stepped into the Highlands during John Robertson’s leave of absence.
McCann moved on at the end of the season and his short-term stay as Robertson resumed work as the club’s sporting director and began a search for a new manager – and Dodds has taken over the mantle.
The former Scotland and Chelsea strikersaw off three other candidates to land his first full-time managerial role. He previously served as Jim McIntyre’s assistant at neighbouring Ross County for three years, winning the League Cup, and also held similar coaching roles at Dundee United, Dundee and Queen of the South.
Caley CEO Scot Gardiner said: “I am very pleased to be able to confirm Billy as head coach after a rigorous interview process last week and I am also grateful to Billy for entering into that process in good faith.”
“While Billy was always our initial favourite for the position given his input and showing during the last six weeks or so of the season, I explained to him that we would be doing the club and the fans a disservice if we did not go through the process of first inviting applications and then hosting face to face interviews.”
“Billy understood this instantly and agreed that we would be correct to go down that route, confident in his own ability to come through the process. Very helpfully and in the face of us speaking to another three of the excellent candidates who made up our short list, he remained the best man for the job at the end of that process and will now take up the position with immediate effect.”
“Once again, we’d like to welcome Billy to the club but on a full time basis this time and as the head coach.”
Dodds replaces Robertson who has moved to a new position within the club after bringing his second spell as the Highlanders’ boss to an end. Robertson previously managed the club between 2002 and 2004 and returned in 2017.