Strachan in line to succeed O'Neill

Soccer news: Gordon Strachan will manage Celtic next season in place of Martin O'Neill. Celtic will this morning confirm that O'Neill is to stand down for family reasons after Saturday's Scottish Cup final and sources at the club last night confirmed that Strachan will take over from the Irishman.

O'Neill is leaving to be with his wife Geraldine, who has cancer, and Celtic have reached a deal for Strachan to succeed him. The former Scotland international is returning to management 15 months after he quit Southampton to take a break.

Celtic will announce in a statement to the Stock Exchange today that O'Neill will step down after the cup final against Dundee United, ending days of speculation. O'Neill is not taking a break from Celtic, which had been mooted, and he has made it clear that he will not be walking into another job .

The post provides Strachan with a first opportunity as a manager to win a league title and compete in the Champions League, which he will do next season if Celtic come through two qualifying rounds.

Celtic believe Strachan's success in reaching an FA Cup final with Southampton in 2003 and lifting the club to fourth in the Premiership during his final season there is proof of his suitability.

O'Neill, too, had enjoyed cup success and overachieved in the league with Leicester before he arrived. Southampton's slide since Strachan's departure, culminating in relegation this month, has been noted at Celtic.

They also recognise that Strachan is aware of the workings of Scottish football from his playing days at Dundee and Aberdeen, and of the pressures of the Old Firm rivalry. He will go head to head with Alex McLeish, his friend and former Aberdeen and Scotland team-mate, who is in charge of Rangers.

Strachan made it clear during his sabbatical that he wanted a different challenge from previous management jobs, where his first tasks were to avoid relegation. Celtic undoubtedly offer that. The 48-year-old will be expected to add to the silverware he won as a player with Aberdeen, Manchester United and Leeds United. And the prospect of Champions League football is bound to appeal to him; he has managed in the Uefa Cup with Southampton but went out in the first round to Steaua Bucharest.

Celtic will give him money to strengthen the squad. There is speculation about a £15 million share issue, a large proportion of which could go on transfer fees.

One of his first tasks will be to discuss the future of Craig Bellamy, whom he managed at Coventry and who has been on loan at Celtic from Newcastle.

Strachan succeeds Celtic's most successful manager since Jock Stein. O'Neill arrived in 2000 and led the club to three championships. He also took Celtic to a Uefa Cup final - their first European final since 1970 - but lost there to Porto.

The Scottish title was snatched from O'Neill last Sunday, when Celtic conceded two late goals at Motherwell to hand Rangers the trophy. He will hope to leave on a high on Saturday.

"The gaffer has been great in his time with Celtic, with us and with the fans," Stilian Petrov said. "It will be hard to see him go but everyone knows the reason. I hope everything goes well for him and his family."

Meanwhile, Chelsea expect to make their first signing of the summer over the next few days when they conclude a deal for the Athletic Bilbao left-back Asier Del Horno worth £10 million.

Everton have confirmed that they have made an inquiry about signing Scott Parker. Several other teams, including Birmingham, Tottenham, Newcastle and Aston Villa, are also keen on the Chelsea midfielder.

The Goodison Park club moved a step closer to signing Simon Davies yesterday when the Tottenham winger had a medical after the two clubs agreed a £4 million fee last week.

Birmingham admitted they had made an inquiry about Crystal Palace striker Andrew Johnson but were told the England international was not for sale.

Former England left back Graeme La Saux has announced his retirement from the game. The 36-year-old was part of the Southampton side relegated from the Premiership this month.