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OXFORD United and Leicester City are believed to have agreed compensation to allow Michael Appleton to move to the Foxes as their new assistant manager.

Reports are emerging that the two clubs have reached an agreement that ends his three-year stay at the Kassam Stadium.

Appleton was understood to be using the weekend to weigh up his options after being approached by Craig Shakespeare to join forces once again and be his No 2.

Appleton and Foxes boss Shakespeare are good friends after starting their coaching careers together at West Bromwich Albion.

The signs were ominous for U’s supporters after reports from Scotland claimed Liam Lindsay, who discussed personal terms with United last week, has turned down a move because of the uncertainty.

Oxford had a bid in the region of £350,000 accepted by Partick Thistle for the 21-year-old centre half.

Lindsay is believed to have agreed terms during a meeting with Appleton on Thursday, and was due to be returning to United in the next 24 hours to undertake a medical and complete the formalities of his move.

However, it seems he has been unable to be given assurances over the future of the U’s boss, so will now not be joining.

Barnsley are the new front-runners to claim his sought-after signature.

A report in one national newspaper claims Leicester are prepared to pay £500,000 a year for his services.

The departure of Appleton, who has secured a promotion, two Wembley appearances and several cup giant-killings during his time at Oxford would be a huge blow for the club, leaving them managerless just two weeks before their players report back for pre-season training.

Neither Oxford or Leicester have yet commented on the story.