• 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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• French left-back made 56 appearances in two years
• Other players asked to defer proportion of their wages

The Hull left-back Bernard Mendy has left the club by mutual consent. The 28-year-old Frenchman made 56 appearances for the side after arriving on a free transfer in July 2008.

“Everybody at Hull City would like to thank Bernard for his efforts during his two seasons at the KC Stadium and we wish him well for the future,” said a club statement.

Mendy’s departure is unlikely to be the last as the club seek to stabilise their finances following their relegation to the Championship.

The club’s head of football operations, Adam Pearson, put a proposal to players last week which would mean they would defer a proportion of their wages in the short term to ease the burden over the summer months.

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• Tigers not heading for insolvency, say club
• ‘We need to reduce our outgoings to a level that is sustainable’

Hull City have responded to reports about the club’s financial future by insisting that there are no plans for the Tigers to enter administration.

Hull have a £40m annual wage bill which the chairman, Adam Pearson, aims to reduce to £15m, and are currently £35m in debt, but insist they are not heading for a 10-point penalty next season.

“The consequences of relegation have a material impact on the revenues of the football club and, as has been widely reported, the board have been meeting to discuss the management of the transition from the Premier League to the Championship,” said the club in a statement. “This should not be surprising and there are no plans or intentions for Hull City to enter into any form of insolvency process as has been suggested in the media.”

The owner of Hull City, Russell Bartlett, said: “It is obviously very disappointing for everyone at the club to have been relegated. As we had anticipated, we will need to reduce our outgoings to a level that is sustainable over the longer term. The management is working flat out to achieve this objective and I am very impressed with the commitment being shown by our staff.”

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