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Crystal Palace first-team coach Shaun Derry leaves the Eagles to join new Wolves boss Gary O'Neil's backroom staff at Molineux

Crystal Palace first-team coach Shaun Derry is leaving to join new Wolves boss Gary O'Neil's backroom team.

O'Neil was appointed new Molineux head coach on Wednesday following Julen Lopetegui's exit amid tensions over the club's recruitment strategy.

And it is understood that Derry is leaving Palace, where he was recently re-appointed onto Roy Hodgson's staff, to join O'Neil at Wolves.

Derry is a hugely respected figure at Selhurst Park and his departure will arrive as a blow ahead of the new season.

The former Eagles midfielder returned to the club in a coaching capacity earlier this summer after originally being dismissed by sacked head coach Patrick Vieira following a disagreement.