Holloway is the new Leicester boss despite chairman Mandaric's denial

Holloway held talks with chairman Paul Stapleton yesterday and left training to his assistant Tim Breacker after Leicester supremo Mandaric asked for official permission to speak to the former Queens Park Rangers boss.

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It comes 24 hours after Mandaric, who is looking for his fourth manager of the year, said: 'I haven't asked Plymouth for permission to talk to him and I have no intention of doing so. These rumours keep on cropping up but Ian Holloway is not in my thoughts.

'I will keep on working to bring the right person in who can get us on a winning streak straight away.

'Ian Holloway will not be the next manager of Leicester and I am still looking around for the right candidate to take this club into the Premier League.'

However, he is believed to have made a quick turnaround and wants 'Ollie' in for Saturday's trip to Bristol City — so long as Leicester can iron out a compensation package of around £230,000 for the colourful 44-year-old.

Mandaric, who returned from California on Monday, has spent the last month searching for a new boss after Gary Megson left for Bolton after just six weeks in charge, and Martin Allen departed earlier in the season.

Joe Royle and Peter Reid have already been interviewed for the position but former Everton boss Royle ruled himself out for personal reasons.

Plymouth are considering a return for former manager Paul Sturrock should Holloway's compensation be resolved.

Sturrock, 51, once voted Plymouth's Manager of the Century, is in charge at League One Swindon.

Meanwhile, Burnley will have to double their compensation offer if they want to land St Johnstone boss Owen Coyle.

The Scottish side are demanding £200,000 before letting Burnley chairman Barry Kilby speak to Coyle.

A Burnley spokesman said: 'Compensation was offered if it transpired Mr Coyle was later appointed as Burnley manager.

'However, permission to negotiate has been refused and the two clubs are unable to reach agreement.'

Coyle is desperate to head south and try his luck in the Championship, and St Johnstone are willing to let him leave if the price is right.

However, they said in a statement: 'Burnley's offer proves their value is much lower than St Johnstone's.'

Former Everton assistant manager Alan Irvine admits he is taking a massive gamble by agreeing to take over Championship strugglers Preston.

The Scot, 49, quit as No 2 to David Moyes and replaced Paul Simpson at Deepdale.

He said: 'My job was, in Premier League terms, as secure a job as there could be in football.

'So it's a risk I have taken in coming here but that shows how confident I am in getting Preston away from the bottom of the table.'