Leicester City have lost another key member of the team behind their Premier League title triumph after Steve Walsh was appointed as Everton’s first director of football.

They initially rejected Everton’s approach for their head of recruitment, credited with the purchases of Riyad Mahrez, N’Golo Kanté and Jamie Vardy, before the Goodison Park club returned with an improved offer that met Leicester’s compensation demands.

Juventus and Everton set for battle over Newcastle’s £35m Moussa Sissoko Read more

Walsh, who also held the title of assistant manager, has started work at Everton with immediate effect, meeting Ronald Koeman to discuss transfers before his arrival was announced. Newcastle United’s Moussa Sissoko is one target but Everton face strong competition from Juventus for the £35m-valued midfielder.

Walsh is the second departure from Leicester’s backroom team this year after Ben Wrigglesworth, their former head of technical scouting, joined Arsenal last season. Claudio Ranieri has also lost Kanté to Chelsea despite being able to offer Champions League football next season, unlike at Stamford Bridge.

Farhad Moshiri, Everton’s major shareholder, turned to Walsh in his overhaul of the club’s management structure after missing out on Monchi, the sporting director at Sevilla. Walsh was Chelsea’s scout in the north of England for 16 years, while also working as head of PE at schools in his hometown of Chorley. He was promoted to European scout at Chelsea before joining Newcastle, Leicester under Nigel Pearson, Hull City and returning to Leicester in 2011.

“I’m proud and privileged to become director of football at such a fantastic and historic club,” Walsh said. “With a new manager and a new major shareholder, it feels very much like a new era here at Everton and that potential is what is most exciting. I know the club well. My roots are in the north-west and my brother, Mickey, was an Everton player in the Bob Latchford era and always proud of that fact. I also did my initial teacher training at Liverpool Hope University many years ago. I’m genuinely excited to be here at the club and very much looking forward to getting down to work.”

Koeman has signed only the back-up goalkeeper Maarten Stekelenburg from Fulham since replacing Roberto Martínez as the manager last month. Anticipated bids for John Stones and Romelu Lukaku, with Manchester City firm favourites to sign the England international defender, have complicated Koeman’s rebuilding plans and the manager is anxious to resolve the futures of both players. He had backed Moshiri’s plans for a director of football before completing his switch from Southampton.

“It’s really good for the club to have someone in Steve who has shown his quality at a number of clubs over many years,” Koeman said. “That’s the experience and quality he will bring to us at a good time in the season. He has a great deal of knowledge about building for the long-term and the magnificent work he did at Leicester on top of the job he did at Chelsea makes us excited to have him here at Everton.”

Everton chairman Bill Kenwright added: “It’s great news to welcome Steve to our new era at Everton football club. His track record, particularly at Leicester City, is already the stuff of football folklore, and both myself and Farhad, having spent time with Steve, are convinced he is exactly the right fit for our club and our new manager.”

Leicester’s director of football, Jon Rudkin, said: “Steve has made a signification contribution to the most successful period in the club’s history and it is with a heavy heart that we accept his decision to seek a different challenge in his career. We thank him wholeheartedly for his service and wish him and his family well in the future.”