Celtic have appointed Willie McStay as their reserve team coach following Kenny McDowall's departure to Rangers. McStay has been promoted from his role as youth team coach and will seek to continue the success achieved by McDowall.

McDowall, who was announced as Rangers' first-team coach on Wednesday, led the reserves to the last five league titles. McStay also achieved unparallelled success at youth level, leading the under-19s to four successive titles. He has overseen the emergence of young talents such as David Marshall, Aiden McGeady, Shaun Maloney and John Kennedy.

He has been involved in Celtic's youth system for more than a decade after having been head-hunted by then manager Tommy Burns in 1994. Prior to that, he managed Sligo Rovers to a treble of the Irish first division title, the first division Shield and the FAI Cup.

Alan Thompson was still in talks with Leeds United last night over a move to Elland Road. The Celtic midfielder was in Yorkshire for a medical and is likely to sign today.

Thompson earns an estimated £28,000-a-week and his removak from the wage bill, will be a boost for Celtic manager Gordon Strachan as he hunts new targets.

Stephen Pearson already has left for Derby County this week in a £750,000 deal. David Marshall could also be set to leave Parkhead on a loan deal to Norwich.

Celtic and Rangers both have made informal inquiries about Hamilton Accies youngster James McCarthy. However, the 16-year-old is the subject of official interest from Liverpool, Reading and now Chelsea. The Stamford Bridge club are the latest to show an interest in the youngster, who has made 11 top-team appearances this season.