READING FC say Jaap Stam was always their first choice candidate to replace Brian McDermott as manager.

The ex-Manchester United defender signed a two-year contract at Madejski Stadium this afternoon, with the option of a third year.

The 43-year-old Dutchman will be joined by Andries Uldrink and Said Bakkati as his assistants, having worked with them when coaching the Jong Ajax reserves side, a role Stam recently left.

Royals also say goalkeeping coach Dave Beasant and first-team coach, Steven Reid, will remain with the club, despite rumours suggesting they could be on their way.

Former Netherlands star Stam has been the clear favourite to replace McDermott ever since he was sacked by Reading for as second time on May 27.

It was reported Royals had held talks with former Atletico Madrid winger, Milinko Pantic, 49, but the club insists Stam was always top of the wish list from a field of '14 or 15 canidadtes'.

Chief Executive Nigel Howe said: “I am delighted to welcome Jaap to Reading.

“He was the first choice amongst a vast number of applicants interested in the position and we are thrilled that we have managed to secure the signature of a manager with such an abundance of experience.

“His record as both a player and coach, at the very highest level in England, Italy and Holland as well as internationally, speaks for itself and on behalf of everyone at Reading Football Club I would like to wish Jaap the very best in his career as a Royal.”

Stam becomes Reading's fourth manager in a little over 18 months following the departures of Nigel Adkins (Dec 2014), Steve Clarke (Dec 2015) and McDermott.

Royals shareholder Sumrith 'Tiger' Thanakarnjanasuth stated: “I have spoken to Jaap about his hopes and ambitions for Reading and it is clear to see he is a man with a real passion for football and a lot of energy and enthusiasm ready to put into his new role.

“He and his coaching team arrive from Ajax, a club globally renowned for developing young players into first team stars, and from this moment onwards we will sit down together and help to put his plans into action to build a strong squad capable of rising to the challenge of the Championship in 2016/17.

“He has achieved the very highest honours as a player and has already won a title in his coaching career, so now he can begin what we believe will be a very successful journey in management at Madejski Stadium.”