Roy Keane declines opportunity to manage Sunderland for a second time

Roy Keane has decided against a return to management at Sunderland after failing to agree terms with his former club, leaving the path clear for Alex Neil to take charge.

The Manchester United legend informed the hierarchy that he would not be accepting their offer after two rounds of talks. Sources say that contractual issues played a part in Keane’s rejection.

Sunderland quickly turned their attention to former Norwich and Preston manager Neil, who impressed during interview last week. Grant McCann, recently of Hull, and former Nottingham Forest boss Sabri Lamouchi were the other names in the frame.

Keane had been Sunderland’s main target but turned the role down over contractual issues

But the failure to land Keane after he was interviewed on Friday and held further talks this week will be of disappointment to supporters.

The 50-year-old had seemed set for a return to the Stadium of Light – 15 years after leading the club to the Championship title – and his appointment would have been hugely popular.

However, noises began to emerge earlier this week of the club keeping their options open as negotiations with Keane failed to progress.

The Irishman led Sunderland to the Championship title back in the 2006-07 season

The Irishman will instead continue in his role as a TV pundit, earning a lucrative wage in comparison to Sunderland’s offer. The club had also wanted him to take a short-term deal until the end of the season.

Neil, however, is willing to accept that arrangement and will be in the dugout for Saturday’s trip to AFC Wimbledon.

Sunderland have slipped to fourth in League One having lost both matches since they sacked Lee Johnson last month.

Sportsmail revealed last Wednesday that Keane was the preferred choice to take over and his appointment seemed likely when, on TV on Friday night, he confirmed his desire to return to management, 11 years on from his last job at Ipswich.

Sunderland were hoping to wrap up Keane’s appointment after a poor run of League One form

Lee Johnson was sacked by Sunderland over their poor results as they seek promotion 

But it is Neil, 40, who will now be charged with reviving Sunderland’s promotion push. Fans have welcomed the Scot’s arrival, but questions are being asked of owner Kyril Louis-Dreyfus and sporting director Kristjaan Speakman.

Supporters, frustrated by recent results and the Keane situation, are demanding to know who is making the key decisions at the club, with the exact make-up of the ownership unknown.

Meanwhile, we understand other applicants who were spoken to included Neil Lennon, Jody Morris and Enzo Maresca.

Keane’s former team-mate Rio Ferdinand had been backing the ‘character’ to take the job