David O'Leary moved closer to making his first major signing for Aston Villa last night when Sunderland agreed to sell midfielder Gavin McCann for £2.25 million.

The transfer now rests on the 25-year-old McCann's personal demands and O'Leary will be hoping Villa's new wage ceiling of £18,000 a week does not ruin yet another attempt to strengthen his squad.

The move will disappoint Everton, who were also pursuing their former player. But they will get 25 per cent of the fee as part of a sell-on agreement struck when they let McCann go to Sunderland for £500,000 five years ago.

O'Leary's attempts to sign goalkeeper Paul Robinson and Australian midfielder Brett Emerton faltered because Villa would not meet their wage demands. McCann, however, is keen to join Villa.

O'Leary was given another boost when Villa's record signing Juan Pablo Angel said he wanted to see out the remaining two years of his contract.

The 27-year-old became disenchanted with life at Villa Park under Graham Taylor last season and would have welcomed a transfer.

But O'Leary's arrival and his methods have prompted a change of heart by the Colombian striker.

"If you had asked me six months ago if I had a future at Villa I would have said 'no'," Angel said. "I was unhappy because of many situations. But I have been very happy with the way we have been working in the last two weeks and want to stay."

The England striker Kevin Phillips seems certain to follow McCann out if the manager Mick McCarthy's allocation of squad numbers is anything to go by.

Phillips has been allocated the number 19 while the number 10 shirt he has occupied since joining the club from Watford six years ago will be worn by Marcus Stewart. McCarthy has allocated another Villa target, goalkeeper Thomas Sorensen, number 25 and Mart Poom the number one jersey.

"The squad numbers simply reflect the fact that Kevin and Thomas are in discussions with various clubs and are unlikely to be with us for much longer," McCarthy confirmed.

O'Leary is also keen on Sorensen and Rangers want Phillips, but consider him over-priced at £3.5 million.

Meanwhile, Newcastle United's one-year-old partnership with Dalian Shide has resulted in the formation of a new club, Hong Kong United, which will compete in the Chinese League next season.