Luton Town's divisional rivals could land Champions League winner, Watford battle for Bundesliga winger - Championship gossip

Luton Town made a welcome return to winning ways last night, as they picked up a 2-1 win against Bristol City - a result that sees them sitting in 11th place heading into the new year.

Next up, the Hatters kick off their 2021 fixtures on Saturday, when they host QPR - a side they drew 1-1 with back in July - at Kenilworth Road. In the meantime, here's all the latest news and transfer gossip from the Championship.

Ahead of the January transfer window, Derby County are the bookies' narrow favourites to sign Manchester United's Phil Jones on loan, ahead of the likes of Everton, Middlesbrough and West Brom. (Sky Bet)

Ex-DC United boss Ben Olsen has joined the bookies' front-runners for the Sheffield Wednesday job. Ex-Bayern Munich player Thorsten Fink is the current favourite, battling Gus Poyet and Jose Morais among others. (Oddschecker)

The likes of Preston North End, Stoke City and Nottingham Forest all look set to miss out on Shamrock Rovers and Republic of Ireland midfielder Jack Byrne, who has been tipped to join APOEL Nicosia instead. (Irish Independent)

Watford and Bournemouth have both been credited with an interest in ex-Manchester City prospect Rabbi Matondo, who looks set to leave Schalke after falling out of favour with the Bundesliga strugglers. (Wales Online)

Doncaster Rovers look set to pursue a move for Queens Park Rangers goalkeeper Joe Lumley. He's impressed on loan with Darren Moore's side this season, and could sign for a bargain fee as his contract expires in the summer. (West London Sport)

Celtic are said to be lining up a move for Manchester City winger Patrick Roberts, with a deal depending upon whether he will be recalled from his loan spell with Middlesbrough. He's made just three starts this season. (Daily Record)

Brentford look set to recall Danish defender Luka Racic from Northampton Town, as they aim to provide cover for their first team starters. The 21-year-old has made six appearances for the Cobblers this season. (The 72)

Watford are closing in on the signing of Danish winger Philip Zinckernagel. His contract with Norwegian side Bodo/Glimt expires next month, freeing him up to join the Hornets as a free agent. (Sport Witness)