Queens Park Rangers parted company with Luigi De Canio yesterday but could not put to bed rumours that they have lined up Zinédine Zidane as a replacement. The former France captain has been discussed as a successor with the knowledge of Flavio Briatore, the co-owner of the Coca-Cola Championship club, but it is unclear whether the Italian is willing to match his ambition with a significant outlay to try to secure a deal.

As a signal of Briatore’s intentions, QPR are close to signing a deal with Real Madrid to loan players between the clubs. Briatore’s discussions with Ramón Calderón, his friend and the Madrid president, prompted Zidane to be mentioned as a possible manager at Loftus Road. Also under consideration are Sam Allardyce and Steve McClaren, should the club decide to appoint an English manager.

Briatore wants to restore QPR to the top flight, before setting about establishing the club among the Premier League elite. QPR finished eighth in the top division in 1995, but were relegated a season later. They have even spent three seasons in the third tier of English football.

Zidane, three times the world player of the year, has played only charity matches since he retired from football after France lost the World Cup final two years ago, when he was sent off for head-butting Marco Materazzi, the Italy defender.

Bernie Ecclestone, the QPR co-owner, denied that he had spoken to Zidane. “I can say 100 per cent categorically ‘no’ to stories that we have spoken to Zidane,” Ecclestone said. “We have known for six months that the coach would be leaving and we have to draw up the shortlist, but Zidane’s name is not on it.”

De Canio, 50, who had managed a host of Italian clubs, including Udinese, Napoli, Reggina and Siena, signed a three-year contract when he was appointed manager in October, after the dismissal of John Gregory. The Italian took the team from the relegation zone to finish fourteenth in the Championship. “The club would like to place on the record its thanks to Luigi for his contribution to QPR and wish him all the best for a successful future,” the club said in a statement. “De Canio also wanted to express his gratitude for the opportunity to manage Queens Park Rangers and also for the fantastic experience he had during his time in England.”

QPR announced the largest shirt deal in their history in March when they signed with Lotto Sport Italia, the manufacturers, in a package worth up to £20 million over five years. They are looking for a shirt sponsor after talks with Kingfisher, the beer company, were put on hold. Vijay Mallya is chairman of Kingfisher, and also owns the Force India Formula One team. Briatore is the team principal at rivals Renault.

QPR continue to seek a location for a new stadium in the London Borough of Hammersmith and Fulham. They considered a site near Wood Lane, now occupied by the BBC, and a groundshare with Fulham.