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Sven-Goran Eriksson will remain as England coach after the Football Association decided he had no case to answer over his affair with secretary Faria Alam.

The FA did accept the resignation of its director of communications Colin Gibson, while Alam has also stood down.

The FA also announced a restructuring of its management team. Chairman Geoff Thompson has survived but his influence appears to have been curtailed by the appointment of two board members, David Richards, chairman of the Premier League, and Roger Burden, of the Gloucestershire FA, to “assist” him.

Eriksson always denied misleading the FA over his affair with Alam. He did not attend yesterday’s meeting, but his agent Athole Still said that his client was pleased with the decision.

“I called Sven immediately after hearing the news and he was going out for dinner with England assistant coach Tord Grip,” said Still.

“He just said ‘good’, with a nice chuckle. He is obviously very pleased and relieved.

“He is looking forward to carrying on with his job.”

Afterwards a statement released on the FA website read: “In the case of Sven-Goran Eriksson, the board decided on the basis of the report and on legal advice that there is no case for him to answer.

“In the case of Faria Alam, an employee without executive status within the FA, the board has decided it is not appropriate to make any public statement with regard to her role in this inquiry.”

The statement continued: “This entire episode has been regrettable for the reputation of football in this country but the board remain determined to restore the highest standards.

“Deficiencies surrounding management procedures have been exposed and the board is collectively resolved to see these corrected.”

The FA board, heard evidence from solicitor Peter Norbury, who had interviewed both Eriksson and Alam.

Norbury was asked by the FA to investigate why statement denying an affair between Eriksson and Alam was issued, only to be forced into an humiliating U-turn just a few days later.

Eriksson has been England coach since January 2001 and this year signed a new contract that runs until 2008.

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