The former Manchester United captain had reportedly become disillusioned with teh club following the sale of a number of top players.

Bruce, who has been linked with the managerial vacancies at both Huddersfield and Barnsley, guided his side to eigth place in the league this season- nine points off the play-offs.

However the Bramall Lane club have struggled financially in over the past two years and Bruce has been forced to offload some of his leading assets, including David Holdsworth and Dean Saunders.

Gough rejoins old boss Smith

Richard Gough has joined Everton on a free transfer.

The 37-year-old Scottish defender, who has finished a two-month spell with Nottingham Forest, will sign a one-year contract with the Goodison Park club.

It means Gough will be reunited with Everton boss Walter Smith, who was his manager at Rangers.

Mandaric takes over at Pompey

Portsmouth's new owner is Serbian millionaire Milan Mandaric.

He heads a consortium, including ex vice-chairman David Deacon and former Arsenal defender Bob McNab, who paid �4.5m to take over at Fratton Park.

The Serbian who has made his fortune in electronics, wants top-flight football and possibly a new stadium for Pompey.

And Mr Mandaric, who has already paid �4.5m to take control of the club, wants Alan Ball to stay on.