Milan Mandaric has completed his takeover of Sheffield Wednesday.

The Sunday Mirror says Mandaric last night sealed his £10million takeover of Sheffield Wednesday.

The former Portsmouth owner, who sold Leicester to a Thai consortium for £40million in August closed the deal after agreeing to pay former Hillsborough chairman Dave Allen £1.5million for his loan notes.

Allen, now on the board of League Two high fliers Chesterfield, has agreed to write off another £900,000 he was owed in interest to guarantee keeping the cash-strapped Owls in business.

Mandaric,72, had already persuaded Wednesday's bankers - the Co-operative Bank - to accept £7million in settlement of the £23million they are owed by the club. The rest will be written off making the South Yorkshire club virtually debt-free and owned 100 per cent by Mandaric.

And the Serb businessman also reached an agreement with Owls directors and former directors Geoff Hulley, Bob Grierson, Keith Addy, Mick Wright and Ken Cooke, to take 20 per cent of the £1.5million they were due on their loan notes.

Wednesday, who faced administration with debts of £27million before Mandaric rode to their rescue, will post a formal announcement of the takeover on the Stock Exchange tomorrow morning.