Manchester City agreed a compensation package with Blackburn Rovers Tuesday that should pave the way for Mark Hughes to take charge at Eastlands later this week, dpa reported.
Hughes is yet to discuss personal terms with City, but he had made clear he was interested in the vacancy after the departure of Sven-Goran Eriksson.
"Blackburn Rovers can confirm that they have reached an agreement with Manchester City on compensation terms for Mark Hughes," said a statement on Blackburn's official website.
Blackburn are understood to have set a figure of 5 million pounds (9.8 million dollars) compensation for Hughes and his backroom staff.
The 44 year old joined Blackburn in 2004 after an impressive spell in charge of Wales, and led them to three consecutive top-10 finishes in the Premier League and two FA Cup semi-finals.