The 57-year-old has been in the Bodo/Glimt dugout since 2017, taking them on a remarkable Champions League run last season.
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Following a memorable two-legged win over Italian giants Inter Milan, the Norwegians were knock-out by Sporting in the round of 16.
Now, according to L’Equipe, Knutsen is in advanced talks with BlueCo to become the new Strasbourg manager.
Strasbourg are on the lookout for a Gary O’Neil’s replacement after the Englishman left after just six months to take over at Ipswich.
O’Neil came in to replace Liam Rosenior, who took over at Chelsea in January, only to be sacked by April.