Steve Clarke is staying with Chelsea after crunch talks yesterday.

The Sun says Clarke has signed a new £500,000-a-year deal to work alongside Henk ten Cate.

Clarke, No 2 under Jose Mourinho, had been unsettled by Blues' change of management.

But new boss Avram Grant made it clear to owner Roman Abramovich that Clarke is a key part of his coaching set-up and the former Blues defender was asked to meet the club's hierarchy to clear the air.

Clarke, 44, was told his in- depth knowledge of British football was essential in the new set-up.

In addition, he has been assured Dutchman Ten Cate is not ranked above him and they have equal standing as Grant's assistants.