Mark Hughes was confirmed as Manchester City's new manager today after quitting rivals Blackburn Rovers and his seat at Ewood Park looks like it will be filled by former Bolton and Newcastle manager Sam Allardyce.

Hughes (44) signed a three-year deal today after agreeing to join the club at a meeting with new executive chairman Garry Cook last night.

Hughes, who played for Manchester United, Barcelona and Chelsea as well as winning 72 caps for Wales, replaces Swede Sven-Goran Eriksson who left by mutual consent on Monday after just one season in charge.

Eriksson was named coach of Mexico on Tuesday.

City were given permission to speak to Hughes after they agreed a compensation package with Rovers where Hughes had been at the helm for four years.

"I am delighted to welcome Mark on board. In our view he is the brightest young manager in the game and he was our number one target for the manager's job," Cook said in a statement.

"He made it clear to us from the moment we met that he shared our vision and ambition to make Manchester City one of the top sides in the country."

Cook said Hughes would be given full financial backing in the transfer market by the club's Thai owner Thaksin Shinawatra.

"The Club intends to invest in new players as well as securing the long term services of key members of the current first team squad.

"Mark has already identified some of the players and backroom staff that he wants to see here at City, and we will begin the process of recruiting them immediately."

Rovers said the search for Hughes's successor would begin immediately and ALlardyce has immediately been installed as the front-runner.

"We wish him well, we would have liked him to stay on but he made it clear he wanted a fresh challenge," Rovers chairman John Williams said on the club's website.

Former England boss Steve McClaren and ex-Blackburn striker Alan Shearer have also been linked with the role while an intriguing choice could be Paul Ince, who has done sterling work with Macclesfield and Milton Keynes Dons.

Williams will make stability the most crucial aspect of his search for a successor to Hughes, who led the club to three consecutive top-10 finishes and a place in the Uefa Cup during his spell at Ewood Park.

"We have enjoyed eight years of success and stability with Graeme Souness and Mark and now it is important that we build on our strengths.

"We must make sure it is three successful appointments in a row."