Pearce has one eye on Israel after agreeing new deal

Pearce, 49, has led the Under-21s into three successive European Under-21 Championships, reaching the semi-finals in 2007 before going one better and guiding his team to the final in 2009.

The former full-back, who represented the England senior side on 78 occasions, also managed the team at this summer’s event, but his side was eliminated at the group stage.

It was also announced Pearce would continue to work with the senior England team alongside manager Fabio Capello.

The former Manchester City manager said: “I am delighted to have signed my new contract.

“My aim now is to qualify for Israel in 2013 and hopefully then go on to secure silverware with another exciting group of young players.”

n Aston Villa have reached agreement with Birmingham over the compensation paid to the Carling Cup holders following manager Alex McLeish’s move across the city.

McLeish resigned as Blues boss after three-and-a-half years at St Andrew’s last month and eventually took charge at Villa as Gerard Houllier’s successor.

Birmingham, who have already appointed Chris Hughton as their new boss, demanded Villa pay them compensation for the remaining two years of McLeish’s contract and initially threatened legal action.

But the possibility of a battle between the two clubs has now been removed via confirmation in a statement issued by City.

Blues defender Roger Johnson, meanwhile, last night revealed his transfer from Birmingham to Midlands rivals Wolves is “halfway there” after undergoing a medical.

n Chelsea last night confirmed Michael Essien’s latest knee injury will keep him on the sidelines for up to six months.

The Ghana midfielder damaged ligaments in his right knee during a training session last week, the third serious knee injury of his career, and has undergone an operation.

n Barnsley and Hull City have cancelled pre-season friendlies against Dutch club Feyenoord due to increased fears over crowd trouble.

The two Yorkshire clubs were due to play host to Feyenoord on June 23 and 26, respectively, but police had warned there could be large scale disorder between rival fans.

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