By Phil McNulty
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Manchester City are poised to appoint Mark Hughes as their new manager following a second round of talks with the Eastlands hierarchy on Wednesday.
BBC Sport understands a deal is "virtually agreed" after negotiations in London on Tuesday evening.
Blackburn boss Hughes will meet City chiefs again to finalise terms to take over on an expected three-year deal.
City's only serious concern is a late move by Chelsea after they were snubbed by AC Milan coach Carlo Ancelotti.
Blackburn gave Hughes permission to speak to City on Monday after the Eastlands club indicated they wanted him to succeed Sven-Goran Eriksson.
City's approach has alerted Hughes's admirers within the Chelsea hierarchy, and they may yet launch a late bid to hijack the deal.
But City owner Thaksin Shinawatra is confident he has got his man, saying: "He's an outstanding manager who has achieved many things with Blackburn.
"Mark was always the first choice of our new executive chairman, Garry Cook. Together they will make a great team. They will both prove to be excellent acquisitions, I'm sure."
Thaksin also sent a message to City fans still angry at the sacking of Eriksson, saying: "These are exciting times for Manchester City and I hope the supporters can understand that I share their goals.
"That sometimes means making ruthless decisions. Now we can go forward to a new era, with a new management structure and great hope and ambition."
The Welshman has guided Rovers into Europe twice, but recently indicated his long-term ambitions might not be satisfied at Ewood Park.
Hughes is prepared to risk swapping the stability of Blackburn for the volatile regime that saw Eriksson sacked at City because of the bigger stature of the Eastlands club.
Thaksin is willing to back his new manager with major transfer funds, while he always worked within a limited budget at Blackburn.
And another temptation will be the lure of European football, with City in the Uefa Cup, and the attraction of managing a team that plays in front of 40,000-plus crowds on a regular basis.
A Blackburn statement on Monday said City had made an approach to talk to Hughes.
"Mark has made it clear to the board he would like the opportunity to talk to Manchester City," it said.
"In view of this, the board have decided reluctantly to give permission subject to terms and conditions acceptable to Blackburn Rovers being agreed with Manchester City in advance."
Former Wales boss Hughes has impressed during his three-and-a-half year spell at Ewood Park, guiding Rovers to seventh in the Premier League last season.
He also led the club to its first FA Cup semi-final in 40 years in 2004 and another in 2007.
Earlier this year, the former Manchester United and Chelsea striker was one of the front-runners to succeed Sam Allardyce as Newcastle manager before Kevin Keegan took the job.
Hughes's former Wales team-mate Dean Saunders feels he may be better off staying at Ewood Park.
Hughes succeeded Graeme Souness and assistant Saunders at Blackburn in September 2004 when the pair moved to Newcastle.
Saunders said: "Man City will not be run like Blackburn and Sparky will realise that if he goes there."
"I had a shock going to Newcastle. Graeme took a risk going there but you don't realise how well Blackburn is run until you've left.
"Mark has done well and taken the club into Europe a couple of times by finishing seventh twice.
"But that is because of how it's run and because the chairman and the directors are very stable people.
"Mark will have the same problem at Man City that we had at Newcastle and he'll realise it should he get there."
(BBC)
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