The relationship between the Everton manager Walter Smith and his increasingly embattled chairman Peter Johnson moved precariously close to total collapse yesterday as the Duncan Ferguson saga rumbled on into a fifth day.

Smith angrily refuted Ferguson's claim that he may well have had prior knowledge of the £8 million transfer deal which took the Scottish international to Newcastle United.

Smith yesterday stood by his statement of Tuesday morning that Ferguson had been sold behind his back and that he was not informed of any deal until it was too late to affect the outcome.

"At no time was I consulted about his transfer," said Smith. "At no time on Monday was I made aware Newcastle United had made an official bid and, even more to the point, that my club had accepted it and that Duncan Ferguson was in talks with a view to a transfer.

"During the course of last week I was made aware by a number of people that attempts were being made by the club to attract offers for Duncan. On Monday morning, I received some information and, with the rumours still going around, I felt it was necessary for me to talk to Duncan as his manager.

"I spoke to him and told him that I felt moves were afoot to try and sell him and that I would speak to the chairman before our game against Newcastle United. That meeting never took place and, unbeknownst to me, Duncan actually joined Newcastle during the course of that match on Monday night," he added.

Smith's comments are unlikely to lead to his being sacked, disciplined or even reprimanded. If Johnson did wish to end Smith's brief reign at Goodison Park it would cost him well over £1 million in severance pay - a tidy sum for a club currently £20 million in debt.

Ferguson's new team-mate Alan Shearer, meanwhile, appears optimistic about the big Scot's arrival. "I am certainly looking forward to playing with him."

In another cost-cutting measure, Everton have sold Gavin McCann (20) to Sunderland for £500,000.