“I still feel like I have something to offer. I want to play football and still have a burning ambition,” he said.

“A couple of weeks ago I spoke to Geraint (Williams, the manager) and I was very impresssed with his plans for the club and what he knew about me as a player and how he plans to use me during the season.”

Last season Sheringham became the oldest player to score in the Premier League but he grew increasingly frustrated at his lack of opportunities under West Ham manager Alan Curbishley.

Sheringham’s deal with Colchester is as a player only, ending speculation his move could be his first step on the coaching ladder.

Colchester, the smallest club in the Coca-Cola Championship with a ground capacity of just over 6,000, finished 10th in the last season.

They have since lost key strikers Chris Iwelumo and Jamie Cureton – but yesterday twice smashed their transfer record with the signings of Mark Yeates from Tottenham and MK Dons striker Clive Platt.

And Williams is convinced Sheringham can make a major impact at the club.

“Teddy will bring quality and class to the side and of course goals,” he said.

“It has been well documented that two forwards have left club this summer - but Teddy has got fantastic goalscoring record and we see him keeping that going at Colchester United.”

Sheringham, who won 51 caps for England and helped Manchester United to the treble in 1999, was awarded an MBE in the Queen’s Birthday Honours list.