Blues target Jack Ross has been confirmed as Sunderland's new manager.
Ross has signed a two-year deal at the Stadium of Light. His St Mirren assistant James Fowler has joined him on Wearside.
The 41-year-old told the Black Cats’ official website: "This is a fantastic opportunity to take charge of an incredible football club.
"If you look the history, the facilities and most important of all, the fanbase, you can see what this club can be.
"To be part of the team to help realise that potential is something that fills me with excitement.
"From the moment I spoke to [new Sunderland owners] Stewart [Donald] and Charlie [Methven], their energy and enthusiasm was evident and I share in that.
"There’s a lot of work to be done in reshaping the squad to ensure that we hit the ground running in League One, and I can’t wait to get started.”
Donald added: "We are absolutely delighted to have secured Jack as our new manager.
"Jack is excited to be a part of the future we are building here, and the fact he turned down lucrative offers from elsewhere, including clubs currently in a higher division than ourselves, is testament to his commitment and desire to succeed at this club and his belief in our vision for the future."
Wednesday's news that Ross had agreed terms with Sunderland came as a surprise to St Mirren with the Wearsiders only belatedly asking for permission to speak to him, which the Buddies granted "reluctantly”.
Town were similarly caught off guard having reduced their shortlist to Ross and Hurst.
As previously reported, the 43-year-old Shrews manager has been a leading contender from virtually the start of Town’s recruitment process with Ross an initial outsider but the candidate who most impressed Blues owner Evans during interviews.
Town are expected to hold formal talks with Hurst next week after Shrewsbury’s League One play-off final against Rotherham at Wembley on Sunday.
The Blues have kept their distance during the Shrews’ play-off endeavours but it’s long been understood that they have had a strong indication that discussions are likely to progress positively whatever the outcome of Sunday's match.
Town look to be on track to make an announcement in line with Evans’s outlined timescale of late May or early June, probably late next week.
Asked to comment on links with Town early this month, Hurst said: "It's just a compliment to everyone here and the season that we've had."
Pressed on whether he could guarantee that he would stay with the Shrews next season, he added: ”I can't honestly answer that - it would be wrong for me to sit here and say that. I don't know what's going to happen between now and then.
"All I can honestly say is that I enjoy it here, I've got a good relationship with pretty much everyone at the football club and I want to try and take this club to the Championship.”
Hurst's assistant Chris Doig would be likely to follow him to Portman Road while the Blues are also currently short of a goalkeeper-coach and a fitness-coach with Malcolm Webster retiring and Andy Liddell opting to move on. Those positions at Shrewsbury are held by former Wales international Danny Coyne and Marc Lindsey.
Should an obstacle emerge in their pursuit of Hurst then the Blues would return to their longer list of potential recruits with a number of those interviewed also understood to have made an impression on Evans.
Hurst is now the evens favourite to take charge at Town with Bet Victor, while former Wales manager Chris Coleman is surprisingly second in the running at 6-1 and former Brentford, Rangers and Nottingham Forest manager Mark Warburton third at 10-1.
They're followed by Tim Sherwood, 12-1, Scott Parker, 14-1, and Frank Lampard, 16-1, all of whom TWTD revealed were among those interviewed by the Blues.