Former Huddersfield boss Lee Clark has been confirmed as the new manager of Birmingham City.

The 39-year-old was appointed after impressing in two rounds of interviews as acting chairman Peter Pannu sought a successor to Chris Hughton, who departed St Andrew's for Norwich almost three weeks ago.

The length of Clark's contract was not disclosed.

Pannu said: "I was impressed by Lee's tenacity, zest and his ambition.

"He is enthused by the challenge ahead and is determined to make Birmingham City a real force in the Championship this season. Judging from his record at Huddersfield, I know he has the capability to do exactly that.

"The shortlist of four, out of the 22 applicants, that we put together meant that the appointment of Lee Clark was carefully studied and was a thorough and informed decision by the board.

"I now expect the fans to give him their full support."

Clark, who will be officially unveiled at a press conference at St Andrew's at 12.30pm on Wednesday, was surprisingly axed by Huddersfield in February after just over three years in charge, with Town fourth in League One at the time, although successor Simon Grayson went on to clinch promotion via the play-offs last month.

The former Newcastle, Sunderland and Fulham midfielder guided the Terriers to the League One play-off semi-finals in 2010 before going one step further a year later, losing out 3-0 to Peterborough in the final.

Much of Town's relative success under Clark was built around a 43-game unbeaten run in regular season league matches stretching from December 2010 to November 2011.

Clark is understood to have been recommended to Birmingham by outgoing boss Hughton, whose impressive work in little under a year in charge of the financially-stricken outfit helped him land the role at Premier League side Norwich.

Hughton battled Blues' well-documented cash-flow problems and put together a new-look side following relegation from the top flight, shining in the Europa League and FA Cup before finishing fourth in the Championship and losing out in the play-off semi-finals to Blackpool.

But it promises to be an even tougher ride for Clark before he has even started at the helm.

Blues remain under a transfer embargo, which was placed on the club by the Football League at the start of March having not filed their 2010/11 accounts on time.

Promising midfielder Jordon Mutch, an Academy graduate, was sold to Cardiff last Friday in order to help raise funds, with the undisclosed fee understood to have been in the region of £3million.

Further player departures can not be ruled out this summer, with the likes of defender Curtis Davies, winger Nathan Redmond and highly-rated young England goalkeeper Jack Butland all linked with moves away.

And Clark, when he finally does get the green light to bring in new faces, is likely to have to follow in the footsteps of Hughton in utilising free transfers and the loan market.

Clark's appointment comes on the day Pannu also released a lengthy statement addressing Blues fans.

In it he detailed prospective "substantial profits" for year end June 2012 to help offset previous losses, played down the threat of administration and insisted potential buyers continue to maintain a close rapport despite no deal being on the horizon.

Pannu also revealed the club are awaiting news on the lifting of their transfer embargo.

Following the sale of Mutch, Pannu went on to stress that the strength of Birmingham's squad will be maintained where possible amid attempts to generate further revenue to ensure their financial survival.

"I'd like to make it clear that Jack Butland and Nathan Redmond are not for sale unless we are subject to an eye-popping offer," said Pannu on the club's official website.

"While the decision to sell Mutch was not taken lightly, it was felt replacements could be sought for the midfielder but our intention is to keep hold of other talented gems we have.

"Our supporters should be reassured that the club will not accept any derisory financial offers for any of our key players, as has been suggested, but equally we are required to make sound and balanced financial decisions which we accept are not always going to be popular.

"After all, this is a business."