Phillips says:
"Peter is young and ambitious and this is a great opportunity for him to further his career.
Although we will be very sorry to lose him, I do not think it would be right for the club to stand in his way.
"Peter has done a first rate job for AFC Bournemouth in the past three years.
"He has formed an outstanding management team with Sean O'Driscoll, and will not be easy to replace.
"Nevertheless, we wish him every success.
"West Ham United is a club with a great tradition for playing attractive football and developing high quality youngsters.
"Over the years we have had a good relationship with the Hammers and I'm sure that Peter will help to maintain and build on this in the future."
Peter played over 500 games for Celtic and became a legend at Parkhead, winning Scottish League titles, Scottish FA Cup winners' medals as well as two Scotland caps.
He also played in more Auld Firm derbies than any other player in Celtic's history, a record which he is justifiably proud of.
Peter joined AFC Bournemouth from Reading about the same time Jermain Defoe arrived at Dean Court on loan from the Hammers and he played a part in his great scoring success that almost drove the Cherries to a play-off place.
West Ham United manager Alan Pardew says:
"I am looking for Peter to start on Friday and be involved in the build up to our FA Cup Fourth Round tie at Wolves on Sunday.
"Peter is brave enough to ensure the team plays football in the manner demanded by a big club like West Ham United.
"He will drive everyone mad with his unrelenting enthusiasm, and demand the same degree of professionalism he displayed both as a player and coach - an enthusisasm unsurpassed by anyone I have played with or managed during my career."
Peter signed for Reading under Tommy Burns who was a good friend and team-mate from his Celtic days; when Burns was sacked Alan Pardew took over.
On the West Ham United manager, Peter says:
"I was the first player Alan spoke to because he knew I was good friends with Tommy and he said that wouldn't hinder me and I'd be treated like anybody else.
"But then he left me out of the team and so I asked him if I was being hindered!
"But I trained hard, got back into the side, did well, and I think I won him around as a player and as person.
"I like the way Alan worked, his honesty and determination to succeed.
"He has always been very focused and wants to keep doing things better.
"Pards proved to me he has the character, drive and enthusiasm to be a top boss.
"He did ever so well at Reading and you can see he is totally focused on what he is trying to do at West Ham United.
"I'm surprised he has given me this opportunity now because I have never worked under him as a coach.
"I know he hated playing against us [Bournemouth] when he was manager of Reading - so maybe that's where it's come from!
"It is a fantastic opportunity for me and I cannot thank Bournemouth enough as all the money in the world couldn¹t have bought me everything I've learned at Dean Court."
Peter Grant File
Born 30th August 1965.
Joined Celtic from schoolboys in 1982.
Scottish League title winners' medals 1986 & 1988.
Scottish Cup winner's medal 1989.
Capped by Scotland at full, B, Under-21 and Schoolboy level.
Celtic - 473 League and Cup appearances including 27 in Europe.
Joined Norwich for £200,000 in August 1997.
Joined Reading on free in August 1999.
Joined Bournemouth on a free in Aug 2000 although introduced to fans in that May.
Originally signed as player-coach to Mel Machin but Machin was appointed Director of Football after one game and Grant was made assistant to Sean O'Driscoll.
2000-01: Guided Cherries to within three minutes of Division Two play-offs.
2001-02: Relegated from Division Two on last day of season.
2002-03: Promoted back to Division Two with a thrilling 5-2 win over Lincoln in play-off final at Millennium Stadium.