Former Portsmouth boss Alain Perrin has been named Lyon coach, a source close to the six-times French champions has revealed.

The 50-year-old, who has also been in charge of Marseille, steered Sochaux to the French Cup title this season. He replaces Gerard Houllier, who quit last week after two years in charge.

Perrin had said he had accepted an offer from Lyon but talks dragged on after Sochaux president Jean-Claude Plessis asked for financial compensation.

A deal was reached last night with Lyon accepting to pay Sochaux around €500,000. Perrin was expected to sign a two-year contract. There was no immediate confirmation from Lyon.

Former France and Liverpool manager Houllier, 59, said on Friday he was leaving Lyon after leading them to two consecutive Ligue 1 titles.

Under Houllier's guidance, Lyon failed to make an impact in Europe, falling in the first knockout round of the Champions League this season and in the quarter-finals last year.