Canaries coach Martin Hunter has completed his controversial move to Championship rivals Watford - with immediate effect.

Canaries coach Martin Hunter has completed his controversial move to Championship rivals Watford - with immediate effect.

A compensation package has finally been agreed between the two clubs - although it is clearly an issue which has caused some friction.

“Martin Hunter has left the club,” Canaries chief executive Neil Doncaster confirmed today.

“There has been a delay because Watford did not want to pay any compensation as we had not paid any compensation to the FA when Martin joined us.

“It has all been agreed, including compensation, and it's time for all parties to move on.”

Hunter's departure was revealed last week by manager Peter Grant, who was clearly angered by the manner in which it was dealt with by Hunter and by Watford.

At the time he said: “I got a phone call from Aidy Boothroyd on Thursday evening asking me for permission to speak to Martin, but I think that was after the horse had bolted. I think that talk had been going on and as I've said before, if people give the indication they don't want to be here any longer, I don't give them very much time here and I think it's the right thing Martin moves on.”

Grant has already started the hunt for a replacement, while at Vicarage Road, Hunter will help take the load off former Canaries defender Malky Mackay.

“Martin will have an eye on developing the talent that exists here,” said Boothroyd. “He fits the mould and that's important. His arrival will mean that Malky is less pressured as he learns the ropes as a player-coach.

“Norwich are obviously upset at his departure and I can understand why, because in my opinion he is of the highest calibre as a coach.”

Hunter, 53, will link up with Watford when they return to England next week after their pre-season tour of Germany.

The former FA coach will work alongside Mackay as first team coach to Aidy Boothroyd and assistant manager Keith Burkinshaw.

“I'd like to welcome Martin to Watford, where as with all of the coaches he will have an eye on developing the talent that exists here at Vicarage Road for the wider benefit of the club and individuals,” added Boothroyd. “He fits the mould and that's important for me and the club as we move towards our vision for the future, and it also means I'm one step nearer to finalising my backroom team for the forthcoming season.

“It also means that Dick Bate can further concentrate on developing our Under-24 players and the Academy.”

t The Daily Mirror reported today that the two clubs could again be at loggerheads, but this time over the signature of Leicester City striker Matty Fryatt.