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Black, who is highly regarded by chairman Jeff Burnige, was a popular figure with the fans at Highfield Road after reversing their fortunes and taking them to the fringes of the play-offs. But he was surprisingly sacked by the Sky Blues, who wanted to bring in Peter Reid, in 2004.
Former Charlton Athletic and Cardiff City boss Lennie Lawrence has already ruled himself out of the running, leaving Black the clear favourite.