The FA has approved the appointment of Fabio Capello as the next England manager but there remain some contractual issues to be resolved. These are expected to be ironed out fully by tomorrow at which point the Italian will be confirmed as Steve McClaren's successor.
The Italian is set to earn a reported £6.5 million. By contrast, Sven-Goran Eriksson was on a deal worth £4million a year and Steve McClaren on £2.5million - but the failure to qualify for Euro 2008 cost the FA at least £12million.
FA Director of Communications Adrian Bevington said this evening: "Discussions have continued throughout the day between The FA and Fabio Capello's advisors.
"The FA Board has also today approved Capello's appointment as England Manager subject to the successful conclusion of these contract negotiations. These will continue tomorrow.
"I want to stress that there are no problems and that we are going through the necessary process to reach a successful conclusion.
"Understandably, at this time, we are unable to confirm any media activity that may take place. We will provide an update tomorrow."
It is understood Capello wants to bring three or four fellows Italians with him for his coaching staff, including his trusted aide Franco Baldini as his assistant.
The 61-year-old has also expressed a desire to have English coaches as part of his set-up as well, and will decide who these should be at a later date.
Contrary to some reports however, Baldini will not fulfil the role of the FA's technical director.
Capello, former coach at Juventus, AC Milan and Real Madrid, flew back to Italy last night to fulfil a prior engagement after holding talks in Wembley with FA chief executive Brian Barwick and director of football development Trevor Brooking.
FA officials could hardly have been more enthusiastic about the impression the 61-year-old made during his brief visit - leaving little room for argument about how Barwick and Brooking have delivered the 'world class' replacement for McClaren they promised in the aftermath of the Euro 2008 qualifying campaign.
Former England head coach Sven-Goran Eriksson believes the FA "cannot go wrong" with Capello.
"I have known Fabio Capello for many years. I was his opponent in Serie A for 10 years," said the Swede. "He is a very good man and manager. His record speaks very clear. He has won titles in Italy.
"When you talk about that level [international] and mention (Jose) Mourinho, (Marcello) Lippi, Capello, (Alex) Ferguson and (Arsene) Wenger you cannot go wrong - because they are all good managers.
"Of course, Capello will treat the players right. But all the people I have told you about can do it.
"If you are winning big titles you always have big stars in your team. Capello is one of the best managers you can find."
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