Dutch manager will leave in the summer and could be on his way to Anfield or Eastlands.
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Bayern Munich will part company from their coach Louis van Gaal at the end of the season.
The news will alert the chairmen of Liverpool and Manchester City.
Liverpool’s American owners will wait until the summer before deciding on Kenny Dalglish’s role at the club despite the promising start he has made.
NESV are worried Dalglish will not attract the big-name players from continental Europe but they want to keep the fan-favourite on their side so will offer him an ambassadorial role.
Manchester City’s owners will sack Roberto Mancini if the Italian does not deliver Champions League football next season opening the door for van Gaal to come to the Premier League.
Van Gaal’s job has been under-threat since last weekend’s loss to Hannover, following defeats in the Bundesliga to Borussia Dortmund and in the DFB-Pokal semi-finals to Schalke.
The Dutchman’s current deal which is due to end next summer will be dissolved 12 months early with Bayern citing a ‘difference in opinion about the strategic direction of the club’.
The club’s board met with Van Gaal this morning and they appear to have come to a mutual decision to go their separate ways ending almost 48 hours of speculation regarding Van Gaal’s position.
Reports had emerged claiming he had been sacked yesterday but the Bundesliga champions changed their minds citing a lack of suitable replacements.
The decision to keep van Gaal until the summer means there will be minimal disruption to their Champions League campaign, with the Germans leading Inter Milan 1-0 after the first leg.