Chelsea close to new manager, but tight-lipped on Villas-Boas

Chelsea are seeking to replace Carlo Ancelotti, who was axed at the end of last season, just 12 months after guiding the west London club to an historic double. Guus Hiddink - who enjoyed a successful spell as caretaker boss in 2008/2009 and continues to hold a close relationship with Chelsea owner Roman Abramovich - emerged as the leading candidate to return to Stamford Bridge. However, despite Chelsea said to be ready to meet the 4million compensation demands of the Turkish Football Federation to allow Hiddink's departure, it now appears the veteran Dutchman could be set for a sporting director role rather than going back into hand-ons management.

Villas-Boas, 33, would certainly fit the bill for an up-and-coming coach to work with the first team and is no stranger to Stamford Bridge, having worked there under Jose Mourinho.

The Portuguese coach has seen his stock rise after guiding Porto to domestic and Europa League success last season. Chelsea, though, will not be drawn on any specific candidate. A club spokesman confirmed: "We hope to be able to make an announcement regarding the new manager in the next few days."

Porto, though, felt it necessary to react to stories in the Portuguese media suggesting a deal had already been done for Villas-Boas' release and that he was on his way to London. In a statement to the Portuguese Securities Market Commission (CMCM), the club said: "FC Porto, at the request of the CMVM, hereby informs the market that the coach Andre Villas-Boas, as well as several players, has a termination clause. To date, we have not received any communication that this clause will be exercised, nor of the agreement of the coach that is desired."

Despite their determination to keep hold of Villas-Boas, president Pinto da Costa conceded: "If someone deposits e15million into our account and he wants to go, we can not do anything because it is something that is contractually specified."