Former Manchester City, Barnsley, Tranmere Rovers, Morecambe and Port Vale midfielder Chris Shuker, 33, was named as Denham's replacement after he left Shawe View for personal reasons.
Denham, 32, was appointed in May by Tom Baker after he succeeded Graham Heathcote at the First Division North club.
In a statement released by Trafford, Baker paid tribute to his former number two who lists Altrincham, Stalybridge Celtic, Radcliffe Borough, Droylsden, Ashton United and Mossley, pictured, among his former clubs.
He said: “I’m so sorry Chris has left the club he was a really good mate of mine but obviously I respect his decision. I would also like to thank Chris for all for his effort in his time at the club."
Shuker made more than 400 Football League appearances and played five times in the Premier League for City under Kevin Keegan after kicking off his career at the club's academy.
While at City he also spent time on loan at Macclesfield Town, Walsall, Rochdale and Baker called the former Tranmere Rovers player-coach, pictured above, a "great asset to the club."
Images courtesy of www.manchestereveningnews.co.uk and www.tranmererovers.co.uk
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