Donaghy leaves Armagh set-up after five seasons
The four-time All-Ireland winner with Kerry was part of Kieran McGeeney's management team for five seasons, helping them win the All-Ireland title in 2024.
Armagh GAA expressed their "deepest gratitude" to the Austin Stacks clubman in a statement on Wednesday evening.
"His belief in this group never wavered, and his presence helped shape the identity, resilience and ambition of our team," added Armagh.
"Being part of the team that delivered our second all-Ireland title is a legacy that will live long in our hearts, and his influence will be felt for many years to come."
Donaghy said he will walk away "full of pride and memories".
"Thank you to Kieran McGeeney, who took a chance on a rookie coach," added Donaghy.
"You said one year, it became five, only you could pull that off. You said I could help and that you would help me in return. You were a man of your word every step of the way."
His departure comes a fortnight after the Orchard County were beaten by Kerry in the All-Ireland quarter-finals which brought an end to their 2025 campaign.
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