Manchester City are to instigate talks with Kevin Keegan about tempting the former England coach back into management after seven months out of the game.

Although Mick McCarthy is still the bookmakers' favourite for the job, it transpired last night that Keegan figures high on the club's short-list to succeed Joe Royle. Since resigning immediately after England's World Cup qualifying tie against Germany at Wembley in October, Keegan has maintained he would return to management if the job was right.

Across the city, Steve McClaren is expected to sever his ties with Manchester United within the next 24 hours to accept his first managerial position at West Ham. Talks have reached such an advanced stage that McClaren has already been shown a provisional contract in which he is given permission to renew his coaching work with England.