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 after the club reached a compensation agreement with Chelsea.

It has been one month since Pep Guardiola announced his departure from City after a decade at the helm, and the club moved swiftly to identify Maresca as the sole candidate to succeed the legendary Spaniard.

Compensation deal cleared the way

BBC Sport first reported on 8 June that City and Chelsea had been locked in negotiations over a compensation package, now understood to be well in excess of £10 million. Chelsea argued they were owed compensation because Maresca, 46, had been contracted to the club until 2029 before leaving in January, and the Blues had been exploring legal avenues.

City declined to comment when contacted by BBC Sport.

Transfer activity continues in the background

With Maresca yet to be formally appointed, City players not involved in FIFA World Cup 2026 qualifying action are expected to return for pre-season in mid-July. However, some players considering their futures have been left in limbo without the chance to meet their incoming manager.

Transfer business has not stood still. City have already had two bids rejected by Nottingham Forest for midfielder Elliot Anderson, and are expected to return with a fresh offer. The England international is seen as a prime target as City seek to replace departing captain Bernardo Silva.

City's appeal remains strong

City Xtra's Freddie Pye offered this assessment to BBC Sport: