This will be his third spell at Norwich. He joined them as a player from Burnley in the summer of 1985 following our relegation to the fourth division, and he started his coaching career there, working for Gary Megson.
It was 1979 when the 16-year-old Phelan arrived at Burnley as an apprentice and it was less than two years before he made his first team debut, coming on for Steve Taylor in a 3-0 defeat at Chesterfield in January 1981.
By the time the season had finished he'd become a regular in the side and had scored a couple of goals too from midfield, his first coming at Barnsley.
Besides Burnley and Norwich, he played for both Manchester United and West Brom before moving into coaching. He was reserve team coach under Megson at Carrow Road and then became his number two at both Blackpool and Stockport.
He opted not to go with Megson to Stoke, a wise choice with the Icelandic owners about to move in and quickly remove Megson, and took a coaching role at Old Trafford. He moved up the ranks there to eventually become Sir Alex Ferguson's assistant manager until Ferguson's retirement.
Keen to get back into the game, he was on the short list for the Wigan job. Today, however, he has become the first team coach at Norwich under manager Neil Adams and alongside coach Gary Holt.
"I am delighted to have the opportunity to return to Carrow Road," Phelan said this morning. "I have many fond memories and am looking forward to helping Neil and the team to progress and ultimately getting back into the Premier League where they deserve to be."