ALAN STUBBS was last night unveiled as Rotherham United manager after a day of protracted negotiations over the compensation fee owed to Hibernian ended with the Englishman resigning to force the move through.

Stubbs had been expected to speak to the press yesterday afternoon but his official unveiling was put back until noon today as Hibernian dug their heels in over the £120,000 they were due to receive after reluctantly giving Rotherham permission to speak to their manager on Monday night.

Read more: Alan Stubbs going to Rotherham a 'no brainer' insists Mark Burchill

With no sign of a break in the impasse, Stubbs and his first-team coach John Doolan opted to step down from their posts at Easter Road less than a fortnight after guiding Hibernian to a first Scottish Cup in 114 years. The Herald: 21/05/16 WILLIAM HILL SCOTTISH CUP FINAL . RANGERS v HIBERNIAN (2-3) . HAMPDEN - GLASGOW . Hibernian manager Alan Stubbs at full-time.

It is expected Rotherham will still have to pay compensation not least with Andy Holden, the Hibernian assistant coach, expected to join Stubbs and Doolan, who have signed three-year contracts, in Yorkshire over the coming days.

Tony Stewart, the Rotherham chairman, had made Stubbs his No.1 target to replace Neil Warnock who left the club last month after guaranteeing the club’s Championship status.

Read more: Neil Lennon among the frontrunners to replace Alan Stubbs at Hibs

Stewart was particularly impressed by Stubbs’ ability to work with young players not least because he is unlikely to be handing over significant funds to sign new players. Yesterday, he expressed his delight at securing his preferred option.

Stewart said: “We have seen what Alan and John have done and we’ve heard plenty of compliments coming from Scotland. We’ve taken that on board and his achievements speak for themselves. It’s really unfortunate for Hibs. However, it’s an opportunity for Rotherham, that’s how we look at it and it’s an adventure we are all looking forward to.

The Herald: Rotherham chairman Tony Stewart

“That’s life, people get headhunted, people come and go. It’s part of football, it happens to players, managers, they do move about and we feel fortunate to get Alan.

“We think it is a really good catch. He wanted it, we wanted it ¬- it’s a lovely marriage. We are ambitious and so is Alan - so we are hopeful that is a cocktail which will stand us in good stead. Alan and John have plenty of energy and quality and we are looking forward to a positive future and really developing in our third season in the Championship.”

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The search for Stubbs’ successor at Easter Road will now begin in earnest. McBookie has installed John Hughes, the former Inverness Caledonian Thistle manager, as 6/4 favourite for the position.

The Scotland Under-17 manager Scot Gemmill, who was interviewed for the post when Stubbs was appointed in 2014, is the 2/1 second favourite. There has also been significant money for Neil Lennon, the former Celtic manager, who this week revealed he held preliminary talks with the Parkhead outfit regarding a return to Scottish football, before Brendan Rodgers was appointed to the job.