Steve Clarke has resigned as Chelsea coach.

The Times says Clarke resigned as Chelsea's assistant first-team coach yesterday evening to pave the way for a move to West Ham United, where he will work in a similar capacity under Gianfranco Zola, the new manager.

The former Scotland defender has agreed a three-year contract at Upton Park and his appointment will be announced in the next few days, once the club have agreed a severance package with Chelsea. The West London club are demanding £1.2 million in compensation because Clarke has two years left to run on his contract.