Glenn Hoddle has committed himself to Saints for an extra 18 months because he sees the vast potential at the club when they move to their new stadium.

But in agreeing his new deal he also issued a veiled warning that he expects them to match his own ambitions.

It was Hoddle himself who set the time scale of the contract - announced ahead of Saturday's 3-1 home defeat against Middlesbrough - which will now run until July 2002 so that he oversees Southampton's first campaign at their new home.

And although he accepts the financial constraints on the club, he will want to see positive signs of continued growth during the next year-and-a-half.

In a remarkably open interview Hoddle said: "I feel this is the right time scale. It is fair to the club and to me to keep it short at this moment in time.

"There is a lot of potential here with the new stadium just around the corner but the club are going into the unknown. They will have a 32,000 capacity but they might only get 23,000 fans.

"But you can see the possibilities and this is a good time span to find things out and I am delighted to have signed and to be able to look ahead now.

"I have not got millions to spend like some clubs. I have to work with the players we have got and that has gone well and it can get better but it is a challenge to pit my skills against teams who have spent vast amounts of money.

"It is a different type of challenge. Success here would be to turn us from a side fighting relegation and put us in the next bracket.

"That is where we have to pitch ourselves and there are some signs we are getting there."

In order for Hoddle to sign his new deal Saints have had to reach agreement with Dave Jones who was suspended on full pay in January but who has now been paid off.

Although Jones was not available to confirm the outcome, Saints chairman Rupert Lowe said: "We have reached a compromise and he is happy. He is no longer associated with the club.

"It has been a very difficult situation for everyone and it has been a very unpleasant business. This clarifies the situation and allows us to build."

Hoddle spared a thought for his predecessor and admitted it had been an awkward way to get back into football but insisted his own conscience is clear.

He added: "Of course I feel sympathy for Dave. I said that when I first came here. I more than anyone know how it feels to lose a managerial job through something which is not football related. That's how I lost the England post.

"Dave feels there is an injustice but I am outside that situation. If it was not me then it would be someone else.

"It was a tough decision for the chairman. He feels for Dave and is trying to help as much as he can and we all hope Dave gets a just deal. He has got his own battle on away from football and I wish him well.

"I had to wait for Dave's situation to be resolved and if the club had decided to wait for him then that would have been fine by me.

"But the club spoke to me about a new contract about four or five weeks ago and it has evolved from there. There has not been any uncertainty among the players though. It has not been an issue but it is nice to put this behind us and move on all together."

The start date for Dave Jones's court case is November 27. The former Dell boss faces a number of child abuse charges dating back to when he was a social worker.

Converted for the new archive on 25 January 2001. Some images and formatting may have been lost in the conversion.