The Tyrone man, who led the Glenties outfit to Senior Championship success last season, had cut his ties with the club.
But donegaldaily.com understands that the highly respected coach has agreed to at least another year in charge at the club.
Corey almost took the club all the way to the Ulster Club Championship final after a very impressive run.
But he sited work and family commitments as the main reasons for quitting the club a couple of months ago.
But a source at Naomh Conaill confirmed the popular coach is back at the helm.
“Yes Cathal is back and it’s great news for the club. He is a hugely respected coach and we are now looking forward to the years ahead.
“Almost al of last year’s panel is there again this year and if anything it is stronger because the lads are more mature and they have learned a lot from the championship run.
“The club has given Cathal the commitment and backing he need and we are really looking forward to the season ahead,” said the source.