The Pilgrims revealed the move at 2pm on Tuesday and confirmed Lowe had "resigned from his position with the intention of accepting a managerial role elsewhere."
"Having received a request to speak with Lowe from a team in a higher division, the club was obliged to grant permission, as per the terms of his contract at Home Park," a statement added.
Lowe has been the runaway favourite to replace Frankie McAvoy at Deepdale after he was sacked on Monday night.
Andrew Parkinson, Plymouth Argyle Chief Executive Officer, said: “We are very excited about the appointment, and look forward to Steven building on the impressive foundations he has laid at Argyle.
“Schuey is a popular figure at Home Park, and his tactical knowledge, man-management and motivational skills are evident in his day-to-day work.
“We believe he has great potential, and is the obvious choice to provide continuity at a time of great promise at the club.
“More than that, though, Steven fits the profile of the kind of young, forward-thinking Manager we want at Argyle, and no prospective candidate has a better understanding of the club, and squad, than him.
“Of course, we thank Ryan for his achievements as Manager, and we wish him all the best for the future.”
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