Coventry City have unveiled former Watford boss Aidy Boothroyd as their new manager.

The Championship club agreed a compensation package with Colchester yesterday and Boothroyd held talks with Coventry chairman Ray Ranson last night.

Boothroyd, who has signed a three-year deal, said: "This is a big club and a big challenge but is one I am very much looking forward to.

"The potential is here - from the financial stability to the magnificent Ricoh Arena - and I am very much looking forward to getting on with the job."

Boothroyd took over at Watford in March 2005 and after surviving relegation, guided the club into the Premier League via the play-offs the following season.

The Hornets were relegated though and despite retaining a high wage bill in the Championship, Boothroyd was unable to lead his side back into the top flight and was sacked in November 2008.

He took over at Colchester in September last year but United missed out on the play-offs.

Ranson told Coventry’s website: "We are delighted to have Aidy on board. He is considered to be one of the brightest young managers in the English game and we believe he can take us to the next level.

"Aidy did that in his first job at Watford, taking them into the Premier League when few people expected them to get there.

"We look forward to working with him in the coming weeks, months and years as we bid to get Coventry City back where it belongs."

Colchester chairman Robbie Cowling said he had enjoyed working with Boothroyd.

Cowling told their club website: “Aidy Boothroyd has left Colchester United today to take up the position of first team manager at Coventry City.

“Although Aidy was only with Colchester for just under nine months, he has made a big impression at our club and that has obviously not gone unnoticed.

“In that short time, I have enjoyed working with Aidy and I wish him every success in his new role.

“Although Aidy's departure is unexpected, there are opportunities in every problem and I am very confident that the next manager of Colchester United will, with our support, be chasing promotion honours next season.

“Finally, I would like to thank Coventry City's chairman, Ray Ranson, for the professional manner in which he conducted himself during this matter.”