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Wellington Phoenix have unveiled Ufuk Talay as their new coach after he was released by A-League rivals Sydney FC.

Ufuk Talay has been tasked with continuing the rejuvenation of Wellington Phoenix after being confirmed as departing head coach Mark Rudan's successor.

Talay has been released from his assistant coaching job at A-League rivals Sydney FC and will take up his new post at the end of the current season, the Phoenix announced on Saturday.

The appointment comes on the morning after Wellington's 3-1 loss to Melbourne Victory in the first elimination final which ended their season.

It marked a campaign of improvement under Rudan, who announced last month he was cutting his two-year contract in half.

Talay, a former title-winning teammate of Rudan's at Sydney FC, soon emerged as a candidate, having forged a good reputation after a stint coaching the Young Socceroos.

Wellington chairman Rob Morrison said the 43-year-old boasted the sort of drive and quality they were seeking.

''The club has spent a lot of money and resource in the academy space and you can see this in the talent that is coming through," he said.

"We wanted a coach who was going to drive through the group the desire to win, to play for the club and the city and to never give up."

Morrison said Talay shares the same goal as management - to lead a club that regularly reaches the finals and challenges for a title.

Sydney issued a statement announcing Talay had been given permission to terminate the final year of his contract.

Talay described his season with the Sky Blues as the most satisfying of his coaching career.

"This step-up to a head coaching job would not have been possible without the help and support of Sydney FC, so I would like to thank everyone at the club for that," he said.

"Now my focus is solely on repaying that faith by helping the club to another A-League title and progression to our best ever AFC Champions League finish."