The former England coach has signed a two-year deal with the club and has been released by ITV from his television pundit role.

The appointment comes 11 days after David O'Leary was sacked as Elland Road boss.

Despite spending in the region of �100m in his four years at the club, O'Leary failed to bring any silverware to the Premiership outfit.

Leeds are believed to have targeted Martin O'Neill - but the Celtic manager insisted he intended seeing out the remaining year of his contract with the Scottish champions.

Then Middlesbrough boss Steve McClaren was reported by newspapers to be in the frame but Leeds chairman Peter Ridsdale issued a statement yesterday denying there had been any approach.

McClaren himself then assured Boro fans that he was committed to the club's cause.

Venables' last managerial role was at Middlesbrough, where he took over as coach under Bryan Robson in December 2000 for six months and steered the Teessiders to Premiership safety.

Just four days ago Leeds announced on their official website that the club had not spoken to Venables about the position.

A statement to the Stock Exchange revealed: "Leeds United Plc announces the appointment of Terry Venables to the position of manager with immediate effect.

"He has today signed an initial two-year contract.

"Terry Venables has almost unrivalled football management experience, including spells at Tottenham Hotspur, Barcelona, England and Australia.

"In making this announcement Leeds United would like to place on record their thanks to ITV for releasing Terry from his existing Premiership and Champions League contract."

Venables, 59, is expected to be publicly unveiled at a news conference at Elland Road on Wednesday.

Leeds United Supporters' Club chairman Ray Fell believes Venables is a worthy successor to O'Leary.

"The speculation is over and we know we have got a man with charisma and ability and a track record that we are looking for," he said.