Mulvihill is leaving the Welsh capital region a few months before his current contract is due to run out “for personal reasons” and will be returning to Australia. Defence coach Richard Hodges will be in charge of the Blues team for the derby clash with Scarlets on Saturday.
Young, who spent nine years at the Blues before heading to Wasps as director of rugby in 2011, has been kicking his heels since February last year when he left the English Premiership side. He will take over at the Blues on Monday.
“We were acutely aware of the need to bring on board an experienced director of rugby and Dai ticks all the boxes,” said Blues CEO Richard Holland in a press statement issued shortly after announcing Mulvihill’s departure.
“While this is initially only a short-term deal, I know Dai’s desire is to come to a long-term agreement and he will be part of our process.”
Young, now 53, played for Cardiff in the pre-regional era and won the Anglo Welsh Cup and European Challenge Cup in his time as coach at the Blues. He also led them to two second place finishes in the old Celtic League and lost to Leicester in a penalty shoot-out in the Heineken Cup semi-final in 2009.
“This is a club I obviously know very well and am passionate about. I have a huge affinity with the area and many fond memories at the Arms Park,” said Young.
“I enjoyed nine great years here previously and return to Wales with a further nine years of experience in a different environment, culture and league structure with Wasps.
“Now is the right time to return to rugby and to do so with my home region is brilliant. I’m looking forward to rolling up my sleeves and getting started and helping to move the Blues forward.”
Former Wales and British & Irish Lions scrum half Dwayne Peel, currently coaching at Ulster, has already signed a contract to join the Blues as backs coach for next season.