Megson: Wants managerial self-determination (StuForster/Allsport)

The 51-year-old club owner announced his intention to resign from the job after a lengthy afternoon board meeting, which followed a 15-minute lunchtime showdown with his manager.

The Sheffield-based IT multi-millionaire blamed constant sniping by Megson and the lack of a decent scouting system for his decision to leave.

He said: 'When I became chairman, I said I would stay in the job only while I believed we could keep making progress.

'There are two key issues to which no-one can find a solution and, in the absence of a solution, I cannot take the club any further. These two issues will cause damage to the club and will hold the club back.

'It is obvious from Gary Megson's comments in the Press and from comments he has made to me personally that he wishes to see me step down as chairman and he has now got his wish.'

Thompson said in an open letter to fans: 'Public comments which Gary makes repeatedly result in almost constant public criticism of the chairman and the board, which is totally unjustified.

'It is never acceptable for a manager to criticise a chairman or the directors publicly any more than it is acceptable for a chairman to criticise a manager publicly.

'I have also clearly stated that West Bromwich Albion's scouting system isn't good enough. Gary has stated that the scouting system was his dad and a couple of Gary's mates and the lack of a proper scouting system has held the club back for years.'

Thompson criticised Megson's plans to tell the board which players to buy and said a more integrated approach involving chairman, chief executive, manager, assistant manager and chief scout was needed.

West Bromwich will advertise for a board member to take over from Thompson, although it is unclear whether he will sell his controlling stake in the club.

The bitter end to his 28 months in charge was in stark contrast to the joy of Albion's return to the top-flight after a 16-year exile last week.

He said he quit to prevent the club 'spiralling out of control' but could not disguise his disappointment.

He said: 'I've never had a wrong word with Gary until Monday, although I have been aware of a whispering campaign against me.

'Gary made it clear that he did not want to work with me. It's disappointing but it's my job as chairman to make the right decision for the club and the best thing is to get a new chairman.

'I'm disappointed that he doesn't want me but I'm still pleased with what has been achieved under my chairman-ship. I wasn't worried whether he stayed or left but I know that the supporters wouldn't want him to go.'

Megson gave vent to a season's pent-up frustration last week - hours after celebrating the club's promotion to the Premiership.

The 42-year-old's anger, over what he perceived as unwel-come intrusion into affairs that

had traditionally been the manager's preserve, surfaced in briefings.

He thought scouting had been taken out of his hands, despite him assembling a squad capable of earning promotion at a fraction of the cost of neighbours Wolves.

Towards the end of the season, it also became clear the retained list of players would not be his sole preserve.

Megson decided enough was enough and, playing on his popularity with the club's supporters, he demanded a meeting with the board.

His demands were delivered in a frank manner inside 15 minutes before he walked out calmly. The board then spent the afternoon in discussions which ended with Thompson's resignation.