Bolton have confirmed that Gary Megson will succeed Sammy Lee as manager. He has signed a two-and-a-half year contract.

The 48-year-old, who completed barely six weeks of his three-year contract at the Leicester, will be in charge for Sunday's Premier League match against Aston Villa.

Bolton are believed to have agreed to pay Leicester around £300,000 in compensation in order to secure the services of Megson, who replaces Lee in the Reebok Stadium hotseat.

Lee left the club last week following a disastrous start to the season. Saturday's 2-0 defeat at Arsenal — overseen by caretaker manager Archie Knox — left Bolton rock bottom of the table.

Knox will take charge for the final time tonight in the Uefa Cup Group F opener against Portuguese side Braga.

Megson will be charged with turning around a run of form that has yielded only one league win and a total of five points all season.