TERRY VENABLES is set to take charge of Leeds United today - ending Steve McClaren's chances of landing the Elland Road job.

Sources close to Leeds last night indicated that Venables' appointment was imminent.

Middlesbrough had been bracing themselves for the possible loss of manager McClaren after the England coach emerged as a serious contender.

But while news last night broke of Leeds' move for former England boss Venables, McClaren ruled himself out of the running.

''I'm currently trying to enjoy a short holiday with my family but have heard about all the speculation in the Sunday newspapers,'' he said.

''For the sake of the club's supporters, I want to make it clear that I have absolutely no intention of leaving Middlesbrough for any other club.

''Further, I can say categorically and unequivocally that I have not spoken to Leeds United, neither have they made contact with Middlesbrough or myself, nor do I have any interest in speaking to them.

''Since returning from the World Cup with England, I have spent ten days with my staff planning for the new season with Middlesbrough.

''Much of that work has been concentrated around bringing in new players that will help us build on the considerable progress we made last season.

''We have already broken the club's transfer record to sign Massimo Maccarone and have agreed a fee with Atletico Madrid with the aim of bringing Juninho back to Teesside.

''Although I am on holiday, we are still working on bringing in more players in the near future.

''Like myself, the chairman (Steve Gibson) is ambitious and has given me considerable backing to go into the transfer market to help us move forward and excite our fans this season.

''We're building something special at Middlesbrough and I have no intention of walking away from what everyone at the club has been working hard to achieve over the last 12 months or so.''

Boro chief executive Keith Lamb had earlier insisted there had been no contact between the Teessiders and Leeds, nor McClaren and the Yorkshire club.

But Lamb surprisingly admitted Boro would "consider'' any approach, amid reports that McClaren has an escape clause in his four-year contract.

Leeds were said to be ready to make an official approach to Boro this week in their search for a successor to David O'Leary, who was sacked almost a fortnight ago.

Lamb added to the intrigue by saying: "Life is not black and white. If we received an approach we would consider it and deal with it accordingly. We will not bury our heads in the sand.''

Venables, however, was foremost in Leeds' thoughts.

Northern Echo Sport yesterday learned that Boro's former head coach, who helped ex-boss Bryan Robson pull the club clear of relegation two seasons ago, was top of Leeds' official wanted list after Martin O'Neill had pledged his immediate future to Celtic.

Leeds chairman Peter Ridsdale was determined to lure 59-year-old Venables away from his lucrative deal with ITV.

Ridsdale had explored the possibility of appointing Venables as caretaker-manager for one year.

The idea was that Venables would hold the reins, working alongside Brian Kidd and Eddie Gray, until O'Neill was free to arrive at the end of his Parkhead contract next summer.

But a permanent arrangement involving Venables was always under consideration.

McClaren, assistant coach to England boss Sven-Goran Eriksson at the World Cup, has only been with Boro for little over a year since quitting as Sir Alex Ferguson's right-hand man at Manchester United to move into management.

But the chance to take over at Leeds had turned his head. McClaren's advisor, Colin Gordon, admitted his client had been "very flattered to be on their shortlist''.

McClaren has never made any attempt to disguise his dissatisfaction with what he feels has been the failure on Boro's part to provide him with adequate transfer funds.

It is understood he has also become increasingly frustrated by the lack of progress in the market, even though Boro will today unveil club record £8.15m signing Massimo Maccarone and hope to confirm the return of Brazilian crowd favourite Juninho from Atletico Madrid for a reported £4m fee.

McClaren was last season ordered to slash the Boro wage bill, which he has done with no fewer than 19 players moving on.

At the same time, he has brought in six new faces at a net cost of nearly £15m, including Italy striker Maccarone from Empoli.

It seems unlikely that McClaren, who is officially still on a family holiday in Spain, will attend today's press conference.

Lamb added: "We are in the process of buying players and will be unveiling our record signing on Monday. It's business as usual.

"Steve is our manager and under contract. We have just bought players for £14m and we are in discussions with other clubs about other players.''

It remains to be seen whether McClaren's link with Leeds puts a strain on his relationship with the Boro hierarchy.

Read more about Middlesbrough here.