Steve Clarke has been given the green light to begin working with Gianfranco Zola at West Ham after the Upton Park club reached an agreement with Chelsea.

Clarke, who had been at Stamford Bridge for more than 20 years, was the subject of a dispute over compensation after resigning from his post as Chelsea coach following the appointment of Zola as West Ham's new manager.

Chelsea refused to accept Clarke's resignation and wanted £4.8million in compensation, while West Ham offered around £600,000.

It is believed that West Ham increased that figure to around £1m today and Chelsea have now agreed to let Clarke leave Stamford Bridge.

Blues midfielder Frank Lampard had earlier urged his club to let the Scot re-unite with his former Chelsea team-mate, saying: “If he goes to West Ham it will be a loss, but I don't think you can ever take away a man's right to do what he wants to do.

“Clarkey has been an unbelievable servant for Chelsea for many years as a player and as a coach.

“He has been an important member of the back-room staff for what we've done over the last few years. But if he feels he wants to go and do something different — I know he has intentions to be a manager in his own right — you can only wish him all the best.”

Chelsea today appealed against the red card John Terry received at Manchester City on Saturday.
Referee Mark Halsey dismissed Terry for serious foul play when he stopped City striker Jo from running through on goal.

The Football Association confirmed that Chelsea had submitted a claim for wrongful dismissal and an FA regulatory commission will consider the appeal tomorrow.

The Blues skipper faces missing the next League games against Manchester United and Stoke and the Carling Cup tie at Portsmouth.

Meanwhile, former Chelsea striker Jimmy Floyd Hasselbaink today announced his retirement. The
36-year-old spent last season with FA Cup finalists Cardiff.