Talbot is taking over as Oldham's new manager

Former West Brom boss Talbot, who resigned as manager of Rushden & Diamonds on Monday, has signed a contract until June 2007.

John Sheridan, who had been caretaker-manager since Iain Dowie's departure to Crystal Palace last December, will take on the role of first-team coach.

Talbot is expected to take charge of the Latics against Colchester at Boundary Park on Saturday.

Joint Oldham owner Simon Corney was "delighted" to have finally named a full-time replacement for Dowie.

"We earmarked Brian from the very beginning but did not think we would be able to get him," he revealed.

"But then circumstances changed at the right time and we figured maybe there was an opportunity for us."

Corney says the new manager will be given money to bring in players and that Talbot will appoint an assistant in his own time.

"In fairness to Brian, he wants to evaluate what he's got here. But funds will be made available," he added.