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Martin O'Neill will be left with no alternative but to walk out on Leicester City if he wishes to become the manager of Leeds…

Martin O'Neill will be left with no alternative but to walk out on Leicester City if he wishes to become the manager of Leeds United. That was made clear last night by the Leicester chairman John Elsom, who insisted that the Leeds directors would not be given permission to speak to O'Neill about the vacancy at Elland Road.

O'Neill (46), claims that he has every right to speak to the Leeds board under a gentleman's agreement which he maintains was made in the summer with Elsom and the Leicester plc chairman Sir Rodney Walker. It was a claim strenuously denied by Elsom who said: "I remember the meeting. It lasted for about an hour and a half, and perhaps 25 seconds was taken up with the matter Martin is referring to.

Elsom revealed that the Leicester directors had also offered O'Neill a "substantially improved employment package" to remain in charge at Filbert Street. The Northern Irish manager is currently thought to be on a salary of £450,000 a year provided he keeps Leicester in the Premiership. Now it seems his present club are ready to offer him at least a further £150,000 a year, but that is unlikely to stave off his insistence on speaking to Leeds.

O'Neill said: "I had a gentleman's agreement with Sir Rodney and Mr Elsom that under the circumstances of turning down the vacancy at Everton in the summer I would have the right to talk to other clubs."

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"Others may have different interpretations, but I am clear in my own mind that I would not be breaking my contract. I have kept quiet long enough, now it is time for me to come out and say what the situation is.

"I did not want to make a song and dance about it initially, and at the time of the agreement I did not expect a club of Leeds' stature to come along. I am quite clear that I am entitled, at the very least, to hear what they will have to say. I want permission to speak to Leeds, I owe that to myself and my family."

Meanwhile, Leeds's caretaker manager David O'Leary has been handed a one-match touchline ban by UEFA after he was dismissed from the bench during his side's first round second leg clash against Maritimo.

George Graham hopes to begin the task of transforming the fortunes of Tottenham Hotspur by spending £10 million on the Blackburn Rovers striker Chris Sutton.

And with Aston Villa also ready to lodge a bid of £10 million, Tottenham's interest in the 25-yearold Sutton confirms his status as the most coveted player in English football.

With a transfer kitty of £20 million burning a hole in his pocket, Villa manager John Gregory is not in the mood to take no for an answer.

But Graham can now be expected to match that bid, which could spark an auction for the player who cost Blackburn a then British record fee of £5 million when he signed from Norwich City four years ago.

Stephane Guivarc'h, the misfit Newcastle striker, has confirmed he is the subject of a £3 million bid from Rangers. The French World Cup winner has been frustrating at St James' Park since his pounds £3.5 million arrival in the summer. Guivarc'h has been deemed surplus to requirements by Ruud Gullit, and could be sacrificed in the manager's attempt to raise funds for new players.

West Ham manager Harry Redknapp yesterday insisted that he does not want to sell Eyal Berkovic amid reports that the Israeli international could be on his way out of Upton Park. Benfica boss Graeme Souness, who took Berkovic to Southampton two years ago, is said to be lining up a £3 million swoop for the Hammers midfielder.

Mark Hughes leads his country for the first time on Welsh soil tonight admitting that the captaincy is something he has not coveted during an illustrious career. But the Welsh warhorse, 35 next month, admits he will be proud to skipper the side in their crucial European Championship game with Belarus.