NEWPORT County have narrowed down their hunt for a new manager to two preferred candidates, the Argus understands.

As revealed by Argus Sport over the weekend, current boss Jimmy Dack is unlikely to remain at Rodney Parade. The Argus has learned that Dack informed the hierarchy at Newport that he no longer wants to be considered for the role between the defeats to Southend United and Dagenham and Redbridge.

Dack is yet to comment publically on the speculation, but is understood to be ready to make his situation clear on Wednesday morning at County’s press day, ahead of the home clash with Oxford on Saturday. The Argus also understands Dack will not be moving to Gillingham.

Dack’s departure clears the way for a new, permanent successor and as previously revealed, former England legend Terry Butcher is a front runner for the post.

He’s been interviewed twice by the Newport board of directors after initially applying for the role when Justin Edinburgh departed in January. All the candidates currently being evaluated are understood to have applied for the position.

However, Butcher is facing competition from former Cheltenham Town boss Mark Yates, also believed to have been interviewed more than once by County’s board.

Yates, who departed Whaddon Road in November after five-years at the helm, ticks plenty of boxes as a prospective candidate.

He knows League Two, he’s used to working on a budget – Cheltenham’s recent successes before this season came with a budget of around £700,000, almost half of County’s current wage bill - and is based locally.

Yates was recommended to County by his friend Dack and also received a glowing recommendation from Paul Scally after interviewing for the Gillingham post, eventually taken by ex-County boss Edinburgh.

Yates was in attendance for Newport’s 2-0 win at York City on Saturday and has been to Rodney Parade several times this term since his sacking to County play, often as a guest of Dack.

However, ex-England international Butcher is still thought to be the favourite to take over at Rodney Parade despite the fact the club were still interviewing possible candidates on Monday.

His willingness to up sticks from his Suffolk home has impressed the Newport board and despite not having managed in League Two, Butcher’s CV is crammed with experiences of management.

Butcher has had previous spells with Coventry, Sunderland, Motherwell, Brentford, Inverness Caledonian Thistle and more recently Hibernian.

Butcher was relieved of his duties at Hibs in June 2014, just seven months after joining the Easter Road club from Inverness.

Butcher is known to want Steve Marsella, who was responsible for putting most of the current Inverness team together, alongside him at Rodney Parade and has also mentioned the possibility of recruiting former Ipswich teammate Russell Osman.

County have been impressed by Butcher’s knowledge of lower league football. Butcher was the manager who signed Gary Warren from the Exiles when Newport were still a Conference side.

Talent spotter Marsella is a scout who unearthed players like Billy McKay, Aaron Doran, Ross Draper, Warren and James Vincent from clubs such as Kendal Town, Welling, Cheltenham, Ebbsfleet and of course County.

And ex-County captain Warren rates the talent spotter highly.

“He quietly goes about his business, travelling all over the country, watching games and finding players. Occasionally we see him in training when he works with the keepers (he’s also a goalkeeper coach) but usually he is out on the road,” he said when Butcher was in charge at Inverness.

“If anything he’s a bit of an unsung hero at Inverness. He’s the guy who goes out and finds a lot of players in the lower leagues in England.

“He must have a great eye for talent. He’s found players like Billy McKay and Aaron Doran, who were brilliant for us last season. He gets the odd one wrong – like me but there’s not many he doesn’t get right.”

And Warren also speaks highly of Butcher.

Warren said: “The big attraction in coming to Inverness was the fact Terry Butcher was the manager, it’s a nice part of the country and, most importantly, you get the chance to play at a high level.”

However, the Exiles would prefer any external candidate who will be relocating to the area to appoint locally in terms of an assistant manager. Merthyr manager Steve Jenkins is one such candidate County are thought to be keen on.

However, it is understood potential backroom staff additions wouldn’t prove to be a sticking point and the County directors are poised to make their final decision once Dack has announced his departure.

And as ever it will be a collective decision, the County board favouring a ‘one person, one vote’ system, which was utilised in the previous appointments of Dean Holdsworth, Anthony Hudson and Edinburgh.

Butcher, who played 77-times for England and captained them at the 1990 World Cup, has most recently been doing media work.

He was interviewed by Motherwell earlier this season before having a change of heart about the post and the Argus understands he’s most recently spoken with League Two side Portsmouth.

All being well, Newport expect to have appointed their new boss in time to unveil him at Rodney Parade on Saturday when Oxford visit in the final clash of the campaign.