NATIONWIDE Conference champions Chester City have parted company with their assistant manager Steve Bleasdale and are now searching for a replacement.

City chairman Stephen Vaughan said last night: "I can confirm that Steve Bleasdale is no longer with the club, we have parted company.

"There was a difference of opinion over policy matters, and as such we considered that it was prudent that Mr Bleasdale left the club."

Vaughan added: "There was also an internal incident that occurred, but I am not prepared to discuss that issue in the public arena. We would like to wish Steve all the best for the future and thank him for all his efforts whilst he was at the Deva Stadium."

Bleasdale, formerly a youth team coach with Southport FC, joined Chester in January 2002 as first team coach. Then in July 2002, following the departure of Ted McMinn, he was promoted to the position of Mark Wright's assistant manager.

Meanwhile, the Chester chairman said he was mystified by reports last night Scarborough had rejected City's financial offer for their winger Keith Gilroy.

"It's news to me, as far as I was concerned, our offer had been accepted, certainly nobody from Scarborough FC has informed us of their rejection. If it is true, it would surely be more business-like for them to inform us," said Vaughan.