Schmeichel: Defected to blue half of Manchester (MichaelSteele/Allsport)

City boss Kevin Keegan swooped for the former Manchester United star after Aston Villa manager Graham Taylor opted not to renew the 38-year-old Dane's contract.

Schmeichel was dropped from the Villa squad for today's game at home to Leeds, with Taylor going for a more youthful approach with Peter Enckelman in goal.

City beat Gillingham 3-1 at Priestfield and Keegan revealed he will bring Schmeichel to Maine Road at the end of the season on a one-year deal.

Schmeichel's agent Paul Stretford said: 'Discussions have been held with Kevin Keegan over the past few days.

'The club have put a contract together for one year which Peter is very happy with and he will join before the start of next season.'

Villa manager Graham Taylor explained yesterday why Schmeichel was leaving the club.

He said: 'When Peter joined Villa he had a verbal agreement that he would be the club's first choice.

'I was honour bound to comply with this agreement but, as the options on his contract had to be decided by May 1, I thought it was important to sort out this situation as soon as possible.

'There are four games to be played and Peter Enckelman will now come into the side. He has served his apprenticeship under both David James and Peter Schmeichel and deserves his chance.

'Peter Enckelman will play against Leeds tomorrow, with Boaz Myhill on the bench.'

Taylor opted not to include Schmeichel in the squad against Leeds.

'I would not even consider asking Peter Schmeichel to be a substitute as he is a legend in his own right,' admitted Taylor.

'Peter Schmeichel has been in a league of his own but Villa now have to look to the future.

'I thought it was very interesting when Villa signed Peter Schmeichel but we are now another season down the line and changes have to be made.

'I have thoroughly enjoyed working with Peter. He is a great character and has been an asset to Villa.'

Schmeichel joined United from Brondby in 1991 for #600,000 and helped the Old Trafford club to their first championship in 26 years in 1993.

His finest hour came in 1999 when he captained the team in his last appearance for the club in the Champions' League final against Bayern Munich, which United won 2-1 victory.