Sven Goran-Eriksson's agent moved quickly yesterday to distance the England coach from reports in the Spanish media that he was about to replace Vicente del Bosque as manager of Real Madrid.

"This is a load of cobblers," said Athole Still. "I've had people phoning from Spain, Italy, everywhere and the answer's the same to everyone - neither myself nor Sven nor any intermediaries have spoken to anyone at Real Madrid. Sven is more than happy with the job he's got."

It is the second time this year that Still has had to spring into action and offer a denial. Eriksson had previously been linked with the coaching job at Barcelona.

"Every so often someone invents a story like this and, before you know, it gets arms and legs. But there is no truth in it whatsoever," said Still.

The greater likelihood is that Del Bosque will be offered a one-year extension to his contract, given that Real look like regaining their title this Sunday.

In other soccer news, Joe Kinnear has agreed to rejoin Luton as manager, according to the man who led the controversial takeover of the club.

Kinnear was sacked by Luton last month, but Hatters managing director John Gurney claims the pair shook hands on a deal to reinstate him during a five-hour meeting on Sunday.

He said: "At the end of the meeting we shook hands on an agreement that Joe would come back on terms to be agreed with his agent this week.

"Until Joe's signed a contract nothing is agreed. Joe has shaken hands that he wants to come back. A draft contract has been drawn up."

Meanwhile, Mark Bosnich has lost his appeal against his sacking by Chelsea after his positive drugs test.

The former Australian international goalkeeper took the club to the Football League appeals committee to try to force them to reinstate his £40,000-a-week contract, which was terminated in January.

His lawyer Peter Goodman said Bosnich's legal team had yet to receive the written reasons for the decision. "We'll be looking into an appeal when we receive the reasons," he said.

Andy Melville will be a Fulham player next season after last night agreeing a one-year contract extension. But Parma said that the on-loan midfielder Martin Djetou must take a pay cut if he wants to stay at the London club for another year.

French championship runners-up, Monaco, have won their appeal against relegation on financial grounds, the French Football Federation stated.  - Guardian Service