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Manchester City are understood to be considering going down the continental route as they search for a successor to Stuart Pearce.

Pearce was fired by City at the end of the Premier League season and according to reports, Dutch pair Louis van Gaal and Ronald Koeman have been touted to succeed Pearce.

Other names linked with the post include ex-Chelsea manager Ranieri, former Liverpool coach Gerard Houllier – now in charge at Lyon – and the former England boss Sven-Goran Eriksson.

The identity of the next City boss will ultimately be determined by the outcome of takeover talks with former Thai Prime Minister Thaksin Shinawatra.

Shinawatra, whose financial advisers are expected to complete their due diligence on the club this week which will determine whether he will submit a formal bid. An official announcement about the next stage of the process within 48 hours.

Shinawatra has a personal fortune estimated at around £2bn and will make significant funds available for new players, possibly as much as £50m.

If the takeover does not go through, City chairman John Wardle has vowed to make funds available to strengthen the squad this summer.

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