Former Tottenham Hotspur manager Harry Redknapp has verbally agreed a one-year deal to remain Birmingham City manager.
Sky Sports say Redknapp held positive talks with representatives of Birmingham's Chinese owners at St Andrew's on Tuesday,
after he confirmed he wanted the job - if the owners could assure him he would be backed financially.
The 70-year-old, who said yesterday Birmingham cannot endure another relegation scrap next season, wanted a big enough budget for the playing squad so that they can compete in the top half of the Championship.
Redknapp stayed in the West Midlands on Tuesday night and although written contracts are yet to be drawn up, it is believed an agreement has been reached for the ex-West Ham manager to take charge of Blues until the end of the 2017-18 campaign.
Former Portsmouth boss Redknapp helped Birmingham avoid relegation on the final day of the season by winning two of his three games in temporary charge - equalling the number of victories his predecessor Gianfranco Zola managed in 24 games.
Steve Cotterill and Paul Groves have formed part of Redknapp's backroom team at Birmingham and he confirmed the pair could also join the club on a permanent basis if talks are successful.