A former Colchester United player (283 games, 54 goals) who joined the Us at the age of 14, Steve came to Carrow Road in July 1996 with his former teammate Mike Walker. He took initial responsibility for the Reserves but moved to a new post as Assistant Director of the club's Football Academy which would see him oversee the development of players between the ages of 16 and 21. Steve was appointed as first team coach by new manager Nigel Worthington at the beginning of January 2001. His contribution to Norwichs success was rewarded with an extension to his contract that will see him stay at Carrow Road until June 2005.

Steve was made the scapegoat for City's under-par 2005/6 season performance when he departed from the club "by mutual consent" at the beginning of May 2006 with Nigel Worthington saying that he felt the coaching element needed to be shaken up.

The following month saw Steve join Norwich's arch-rivals Ipswich Town as part of new manager Jim Magilton''s new coaching line-up.

Demoted during 2009/10 by Roy Keane to manage the reserve team at Ipswich, his contract was not renewed at the end of the 2009/10 season. He was linked with joining Aidy Boothroyd's Colchester.

He was linked with a role at American side Tampa Bay Rowdies but in October 2011, was helping out at Halstead Town. He also helped Brantham, Needham Market and Tottenham's youth team.

In July 2012, he joined Leiston as first team coach replacing Steve Ball who joined Colchester. Foley confirmed that his new role meant he will not be able to act as a summariser for Radio Suffolk on Saturday afternoons.

On 1st August 2012, Foley returned to Ipswich as Youth Development Coach under returning academy director Bryan Klug who said "Steve Foley has a vast knowledge of the game and has coached across every level. I’ve obviously worked closely with Steve before in our time at the Club and I know he will be a valuable asset to the academy. :

He has also been Head Coach at Ryman League Needham Market but left in Augiust 2019.

In May 2014, Foley was linked with a return to Carrow Road to be part of Neil Adams' coaching team.