Chelsea have confirmed they have accepted a £6 million offer from Celtic for striker Chris Sutton.
New Parkhead manager Martin O'Neill is abroad working as a television pundit for the BBC on Euro 2000, but gave chief executive Allan MacDonald the go-ahead to table a bid for the 27-year-old former Norwich and Blackburn star.
Chelsea have already accepted an offer of the same value from Middlesbrough manager Bryan Robson and now it is in the hands of Sutton to decide where he wants to revive his career.
Sutton has failed to settle after his £10 million move and Chelsea boss Gianluca Vialli has given him permission to leave for a cut-price fee.
Meanwhile, O'Neill's backroom staff dilemma remains unresolved after Mark Lawrenson insisted he will not be joining him at Celtic.
Recent reports have suggested that the former Liverpool defender could be on his way to Parkhead to assist O'Neill.
"I don't know anything about this at all and it is news to me," said Lawrenson.
Sheffield Wednesday have emerged as favourites to land Paul Jewell after the Bradford manager was placed on paid leave by the Bantams.
Bradford chairman Geoffrey Richmond made assistant boss Chris Hutchings caretaker manager this morning although he has refused to accept Jewell's letter of resignation.
Arsenal boss Arsene Wenger has ruled out taking over as coach of the German national side after the European Championship finals.
Wenger says he has no intention of taking over from Erich Ribbeck, who is widely expected to stand down after Euro 2000.
"I still have two years of my contract with Arsenal to run and I keep my word. I am not someone who just gets up and leaves like that," said Wenger.
Everton have reiterated their desire to keep England midfielder Nick Barmby at Goodison Park. The 26-year-old rejected the Merseysiders' initial offer of a new contract several weeks ago, with his current deal having one year left to run, and the club will resume talks when he returns from Euro 2000.
Middlesbrough manager Bryan Robson has issued another firm `hands-off' warning over Germany international Christian Ziege.
The 28-year-old wing-back - Middlesbrough's player of the year last season - has again been linked with Liverpool but Robson has insisted the former AC Milan player is staying at the Riverside.
Chelsea have signed Icelandic striker Eidur Gudjohnsen from First Division Bolton for £4 million. According to the club's official website, the 21-year-old centre-forward has agreed a five-year deal with the Premiership club after scoring 22 goals for Bolton last season.