Blades co-chairman Prince Abdullah bin Mosaad bin Abdulaziz Al Saud told the club website: "Nigel was the clear, first choice of the board. He brings an approach to the game that is well suited to what we are trying to achieve at Sheffield United.
"Nigel has enjoyed managerial success in the game. He knows how to inspire first team players to give their all and has a proven track record of making an academy a key ingredient to the club's success.
"We count ourselves lucky to have Nigel aboard."
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