Manchester City are on the verge of confirming Enzo Maresca as their new manager, with sources telling BBC Sport that a three-year deal is close to being finalised following an agreement on compensation with Chelsea.

The development comes one month after Pep Guardiola announced he would be departing the club at the end of last season, concluding a decade-long reign at the Etihad.

Compensation deal cleared the path

BBC Sport had reported as far back as 8 June that City and Chelsea were locked in negotiations over a compensation package, which is now understood to exceed £10 million. Chelsea argued they were owed compensation because the 46-year-old Italian had been under contract at Stamford Bridge until 2029 before departing in January, and the Blues had been exploring their legal options in the weeks since.

City had declined to comment when approached by BBC Sport.

Maresca the only candidate

From the outset, sources indicate that Maresca was identified as the sole candidate for the role — the man handed the considerable challenge of stepping into Guardiola's shoes at one of world football's most demanding clubs.

Players not involved in the FIFA World Cup are expected to return for pre-season in mid-July, yet without a confirmed manager in place, those weighing up their futures at the club have been unable to hold talks with their incoming boss.

Transfer activity continues

Despite the managerial uncertainty, transfer business has moved forward. City have already seen two bids rejected for Nottingham Forest midfielder Elliot Anderson and are expected to submit a further offer for the England international. The pursuit is seen as part of the club's effort to address the departure of captain Bernardo Silva.

City Xtra's Freddie Pye offered analysis to BBC Sport, noting that the delayed appointment may not have cost City much in practical terms: