• Former Leicester manager signs three-year deal
• Craig Shakespeare and Steve Walsh join Hull as coaches

Hull City have confirmed the appointment of Nigel Pearson as their new manager.

Pearson, 46, who steered Leicester City to the play-offs in the Championship last season, has signed a three-year contract at the KC Stadium and will start work as Iain Dowie’s successor immediately.

Dowie took the job on a temporary basis in place of Phil Brown, who was placed on gardening leave midway through last season and was subsequently dismissed following the club’s relegation from the Premier League.

Hull’s head of football operations, Adam Pearson, said: “We are delighted to welcome a manager of Nigel’s experience and calibre to the club. We feel it’s a real coup for Hull City and that Nigel is the best man to mould the existing squad into a competitive Championship team.

“Nigel had two outstanding seasons at Leicester City and I feel sure this experience and winning formula will ensure the very best chance of bringing success back to the club.”

The Tigers have also appointed Craig Shakespeare and Steve Walsh as coaches. The pair were Pearson’s assistant and first-team coach respectively at Leicester, who bounced straight back to the Championship in 2009 as League One champions under their leadership.

The Leicester chairman Milan Mandaric said in a statement: “We were greatly surprised to receive the initial approach from Hull.

“The past few years have been a turbulent time for both me and the supporters at Leicester City. We have been striving to get a degree of continuity at the club. However, Nigel has done a fantastic job for us and it would have been wrong of us to deny him the opportunity to speak to another club if he wished.

“After speaking to him, we have reluctantly agreed that if he wished to pursue this opportunity at Hull, we would permit it. I am deeply grateful to Nigel for everything he has done for the club. He has put together the foundations of a strong squad and it is now up to us to find a manager to build on those foundations.”

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• Adam Pearson makes cost cutting his priority
• Iain Dowie to meet chairman and club owner

Adam Pearson, the Hull City chairman, will wait at least a month until appointing a manager at the financially troubled club.

Iain Dowie, who took charge for the final nine games of the season but failed to prevent relegation from the Premier League, wants the job but Pearson is making cost cutting – specifically trying to reduce the wage bill to £15m from £4om – his immediate priority.

Although no quick decision will be made on his future, Dowie is due to meet Pearson and Hull’s owner, Russell Bartlett, this week. On Wednesday Hull’s board will also meet Phil Brown, the manager they placed on gardening leave in March.

While there is understood to be no chance of Brown returning as manager, his settlement will be discussed. With Hull unable to pay the £1.4m owed for the one year outstanding on his contract as a lump sum it is likely he will be compensated in monthly instalments.

Dowie’s managerial manifesto enjoys support from within the KC Stadium dressing room – even though the former Crystal Palace and Charlton manager’s critics claim he “overtrains” his players.

Pearson, though, wants to be in a position to properly forecast Hull’s financial position next season – and ensure that entering either a company voluntary agreement or administration can definitely be avoided – before hiring a new manager.

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