Liverpool were last night granted permission to speak to Damien Duff and now rival Newcastle United and Tottenham Hotspur in the pursuit of the Chelsea winger. However, Newcastle appear to be heading the race to sign the £10million-rated Republic of Ireland international.

It is understood that the Irishman would favour a return to the north of England after three years at Stamford Bridge. Rafael Benitez is prepared to use him on his troublesome right flank having failed to prise his principal target, Daniel Alves, from Sevilla.

Duff's preference is to play on the left, though, and Newcastle would offer him that.

The club's website last night claimed the Ballyboden man's contract had already been exchanged with Chelsea, that terms were agreed and the player was on his way to Newcastle for a medical over the weekend.

Duff only has a year to run on his current contract. With the race for the player likely to turn into the auction Chelsea would desire, confirmation of Liverpool's interest could yet have implications for their long-standing pursuit of Birmingham City's Jermaine Pennant, currently valued at around £6 million by his current club.

It is safe to assume that Duff will be taking a close interest in today's match in Oslo, where Newcastle's hopes of competing in this season's Uefa Cup depend on their knocking Lillestrom out of the Intertoto Cup .

Glenn Roeder - whose side drew the first leg 1-1 at St James Park last week - admitted an interest in Duff, saying: "Of course we're interested in players of that quality. There is no problem with the transfer fee whatsoever but as with all very good players, other clubs are interested."

Roeder must also supplement his options in attack where Albert Luque, really a winger, is once again likely to operate as an out-and-out striker. The good news is that Shola Ameobi's fragile hip is sufficiently robust to permit him to start this afternoon.

Roeder believes Lillestrom manager Uwe Rosler will see a different Newcastle today from the team who were pressed into submission seven days ago. "I can see a big difference since last Saturday in both our physical tempo and quickness of thought," insisted Newcastle's manager.

"We've got experienced senior players and we're ready to go now. Playing in the Uefa Cup would be a big opportunity for us."

Meanwhile, Duff is not the only player deem surplus to requirements at Stamford Bridge as Chelsea have agreed to sell defender Asier Del Horno to Valencia. The Spanish international left back travelled to Spain to negotiate personal terms.

Del Horno joined Chelsea from Athletic Bilbao in June 2005 and made 32 appearances for the club last season.

Former Republic of Ireland manager Mick McCarthy was yesterday named as manager of English Championship side Wolverhampton Wanderers on a 12-month rolling contract.

McCarthy, sacked in March by Sunderland after three years in charge, will take over at Molineux on Monday following Glenn Hoddle's resignation earlier this month.

Hoddle quit because the former England manager felt his expectations for Wolves had "drifted too far apart" from those of the club, which failed to reach a promotion play-off place last season.

McCarthy, who won promotion to the Premier League with Sunderland in 2005 but left them all but relegated on his departure, took Ireland to the 2002 World Cup during a six-year spell in charge.

Now 47, the Yorkshireman told the Wolves website: "There's a big job to do at Molineux and I'm relishing the challenge."

Guardian Service