Town legend Terry Butcher has agreed to become head coach with Australian side Sydney FC. Butcher has signed a two-year deal with the A-League champions.

The former England skipper had been reported to be in the running to replace Joe Royle at Town with one report claiming the parties had already been in talks.

Butcher explained his management outlook at a press conference to announce his appointment: “My style is a pressing game. I like to get at teams, stop teams from playing.

"I like my team to be a hard team to beat first and foremost. I want every player to work as hard as they possibly can. Fitness levels will be high [and] we'll do a lot of passing work."

Elsewhere, mystery appears to surround the terms of Colchester manager Phil Parkinson's contract at Layer Road. The conditions of the deal signed in 2002/03 have never been made public with some reports claiming it ends this summer and others suggesting it has a number of years left to run.

Parkinson has, according to a national newspaper, turned down the chance to manage Charlton. If true, this suggests that even if the U's boss is on Town's short-list, he would be unlikely to move to Portman Road.

Yesterday's resignation of Grays Athletic boss Mark Stimson has prompted rumours that he might be on his way to Layer Road as a replacement for Parkinson should he move on. Stimson - a possible outsider for the Town job given his Grays team's passing style and his reputation for bringing through young players - and assistant Scott Barrett, a former Colchester goalkeeper, are also being linked with the MK Dons.

Meanwhile, former Town loan midfielder Jimmy Juan is being linked with a permanent move to newly-promoted Sheffield United.

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