Steve Bruce has handed in his resignation as manager of Sheffield Wednesday, according to journalist Paul Joyce.

Newcastle United have been in talks with the Wednesday manager and his staff over the last few days, and he looked set to become Rafa Benitez's successor, but the clubs stumbled over a compensation fee of £4m.

Bruce's assistants Steve Agnew and Stephen Clemence have also tendered their resignation, so a move away from Hillsborough looks imminent.

Paul Joyce reports that the Magpies have submitted an offer of compensation to Wednesday, but the club is still yet to accept, prompting action from Bruce and his staff.

It is a blow for Wednesday. Bruce's impending departure means they will not only lose a man who had begun to steer the club back in the right direction, but they will not even receive any financial compensation as a result.

Worse still, the club had already started preparations for the new season under Bruce's direction, and made three new additions whom the new manager may not favour.

The Verdict

This is a huge setback to Wednesday and a big blow to any play-off ambitions they may have had with Bruce in charge. The former Aston Villa boss started his tenure with the Owls really well, only losing three of his 18 games in charge, and there was every reason to believe he would have a successful campaign this season.

The club will be left stranded without a manager with just three weeks until the new season kicks off. That means the club could be rushed in its decision to appoint a successor and could be playing catch-up in the next few weeks.

The next appointment is crucial for the club. They need to bring in someone the players can adapt to quickly, whilst ensuring the new addition has a long-term commitment to the club, which they have lacked since Carlos Carvalhal departed.