Mark Hughes has moved a step closer to leaving Blackburn Rovers to take over from Sven Goran-Eriksson at Manchester City after it was revealed today that a compensation package has been agreed upon by the two clubs.

Rovers confirmed the news on their website this afternoon and Hughes is now free to talk to City.

The Blackburn statement read: "Rovers can confirm they have reached an agreement with Manchester City on compensation terms for Mark Hughes.

"As a consequence, Manchester City have been given permission to speak to Mark."

The Blackburn boss is a man in demand after impressing onlookers with his style of play and transfer policy at Rovers.
 
Some Chelsea power-brokers are understood to favour him over more high-profile candidates to succeed Avram Grant, but rumours the Blues are in talks with Carlo Ancelotti may indicate a shift in focus, though they have been refuted by the parties involved.

One man who does not want to see Hughes leave is left-back Stephen Warnock who was signed from Liverpool by the former Manchester United and Chelsea player.

Warnock recently signed a new deal to keep him at Ewood Park for the next four years.

Such has been his good progress the 26-year-old was handed his England debut on Sunday in the defeat of Trinidad and Tobago in a friendly.

"I signed a new contract under the impression that Mark's going to be our manager," Warnock told BBC Radio Lancashire. "It's not that I don't enjoy the club itself but he was the reason I came.

"I wanted to play for him. I respected him as a player and I respect what he's doing as a manager.

"Fingers crossed he'll stay but obviously if he's given permission to speak to another club then you just never know what can happen."