Olivier Kapo leaves Celtic as James Vaughan edges closer to loan move

Celtic insisted they took an option to terminate the former Birmingham and Wigan midfielder's contract this month and Lennon told the club's official website: "These are the facts. Olivier Kapo signed a contract with the club which allowed us to terminate on 10 January, 2011.

"Celtic took this option to terminate as we felt he had not done enough to justify a longer-term contract. We were willing to look at an extension to this short-term contract with Olivier. However, he was not willing to accept these terms. Clearly, everyone at the club wishes Olivier well for the future."

However, the Frenchman has claimed on his own blog that he took the decision to quit the Hoops after they changed the terms of his contract offer. He says he was informed this month that Parkhead chiefs wanted to reduce the salary and were offering a shorter-term than initially agreed when he joined the club.

In an open letter on www.zebwe.com, Kapo said: "I wanted to inform you of my decision to leave Celtic Football Club. This is not an impulse or a whim. That is why today I feel the need to explain why, in the interests of transparency. On 4 November, 2010, I signed a contract which bound me to the club until 2012 with a probationary period of three months. During that time, I required no pay. My sole concern was to recover the pleasure of playing.

"A moral commitment was then made by the football management of the club that my trial period would be converted, as expected, into a contract of 18 months. I began looking for an apartment for my family and a school for my children. My future was with Celtic.

"On 11 January, there was a twist. The executive management called me and said my contract would be changed. My salary would be divided by three and would now expire on 30 June, 2011.

"The position of the club was a 'lack of experience', because four games had been postponed due to the weather and I had been out injured with a thigh injury in late December, from which I have now fully recovered.

"I still do not understand this sudden change of situation. I feel a deep injustice, even though the coaching staff wanted me to stay. Despite the insistence of Neil Lennon, I did not want to stay longer in a situation where a young coach, who was an experienced player, is not able to impose his choices on the financial management."

Celtic have also initiated talks with Everton about bringing 22-year-old striker James Vaughan to Parkhead for the remainder of the season.Vaughan has become a peripheral figure at Goodison of late, and only made his first appearance of the campaign on Sunday when he came off the bench to play the final 16 minutes of the 2-2 draw with Liverpool at Anfield. David Moyes sent him out on loan to Crystal Palace for the first half of the season, where he played under then Selhurst Park-manager George Burley, scoring five goals during his spell in south London. Vaughan has also had loan spells at Leicester City and Derby County in the past.

Another player who could be heading to Parkhead is Levski Sofia forward Garra Dembele, whose agent told BBC Scotland last night that Celtic had made an offer for the 24-year-old. Dembele has scored 27 goals for the Bulgarian side this season and his representative Christian Emille said: "I can confirm Celtic made an offer for Garra and he is very interested. There has also been interest from top clubs in England too. At the moment Levski are weighing up all options but the player himself would prefer a move to a club in the UK." Meanwhile, Charlie Mulgrew has vowed to add goals to his game in a bid to boost Celtic's SPL title challenge. Despite being more used to playing at full-back, Mulgrew has been deployed in midfield in recent games and is determined to take advantage of his more advanced position. Mulgrew has yet to open his goalscoring account this season but hopes that is about to change as Celtic prepare to take on his former club Aberdeen this weekend.

"I feel like I can definitely add goals," he said. "I scored five last year from left-back so I think I can score goals, especially getting up the park and getting on the end of crosses coming from the other side and from free-kicks as well. So it does give you more chance of scoring goals."

He added: "I'm happy to play anywhere so long as I am playing but I do particularly enjoy left midfield. It allows you to get involved in the play, there are more chances of goals, you can get into the box and get down the park and you definitely feel like you are more involved."