Nuno Espirito Santo was finalising a deal to become the highest-paid manager in Nottingham Forest's history on Tuesday night after they sacked Steve Cooper.
The ex-Wolves and Tottenham boss is expected to be named the new Forest boss on Wednesday after holding talks with club owner Evangelos Marinakis.
Cooper's two-year reign, which saw Forest back in the top flight for the first time this century, ended on Tuesday after his relationship with Marinakis had become increasingly strained in recent months.
The Welshman, 44, was thought to be on a salary of around £2million a year on a contract that ran until 2025 and the compensation package is expected to be roughly the same amount.
Marinakis said: 'We thank Steve for his dedication and commitment during his time with us, as well as the incredible connection he forged with our supporters and the city. Steve will always remain a friend of the club and will be forever welcome at the City Ground.'
Nuno, 49, was at Forest on Tuesday night to finalise a return to English football, two years after a disastrous four-month spell at Tottenham.
He was one of the best managers in Wolves' history from 2017-21, taking them from the bottom half of the Championship to the Europa League.
Mail Sport understands that as tensions grew over Forest's results, communication between Cooper and Marinakis broke down almost completely.
Forest hoped another club, such as Crystal Palace, would offer Cooper a job to save them having to pay compensation.
City Ground insiders felt Cooper was keen to depart. They say he treated staff at all levels with respect throughout his time at the club, but that such behaviour was not always reciprocated by those at the top.
Forest's wealth of players meant high earners did
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