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The 47-year old former Leeds United, Sunderland and Manchester City manager will succeed Eric Black who recently departed the Sky Blues after only a few months in the managerial post following a clash with chairman Mike McGinnity.
Reid signs a two year contract with the Midlands club and will return to football for the first time since his sacking at Leeds earlier on this season. Coventry see the Liverpudlian as the man to push them back towards the promised land of the Premier League.