Clarke tendered his resignation to the Blues hierarchy last Friday, which was initially rejected, as he sought to join new Hammers manager Gianfranco Zola at Upton Park.

Chelsea demanded substantial compensation, reported to be as much as £5m for the former Scotland international, but the two clubs are now thought to have settled on a lower figure and Clarke has signed a three-year deal with the east London outfit

huge asset

West Ham chief executive Scott Duxbury said: "We are very pleased to welcome Steve Clarke to the club.

"Steve is rightly regarded as one of the top coaches in Europe and his experience and knowledge will be a huge asset to us.

"He recognises what we are trying to achieve at West Ham United and wants to be a part of that. We have worked very hard to bring him on board and are confident we now have the perfect coaching team."