Ralf Rangnick is the new favourite to take charge of West Brom after the Baggies were put off by £2million-plus compensation demands from Birmingham for Chris Hughton, Press Association Sport understands.

Rangnick has been out of work since September after stepping down from his post at Schalke because of exhaustion. But it is understood he is ready to return to management and has impressed Albion chairman Jeremy Peace.

Rangnick had two spells at Schalke, leading them to the semi-finals of the Champions League in 2010-11, in addition to a four-year stint at Hoffenheim.

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