Manchester City and Chelsea are in advanced negotiations over a compensation package for Enzo Maresca, as the 46-year-old edges closer to succeeding Pep Guardiola at the Etihad Stadium.

Guardiola announced his departure from City on 22 May, ending a trophy-laden decade at the helm. Maresca was swiftly identified as the frontrunner for the role, but his move has been complicated by a dispute between the two clubs over financial compensation.

Why is the move taking so long?

Chelsea argue they are owed compensation because Maresca departed Stamford Bridge in January — just six months into a contract that ran until 2029. The London club have been assessing their legal options and fully expect a payment, though the precise sum and timeline remain unresolved.

Senior figures at both clubs are now in direct discussions, and sources indicate the talks are progressing. The process has been complicated by Chelsea's awareness of City's interest as far back as October and December last year.

Chelsea sources also claim they knew of concerns Maresca had raised over the club's transfer policy. Whether those complaints contributed to his exit is unclear, but the relationship between manager and hierarchy deteriorated over several issues — including medical staff decisions and team selections — in the final weeks of his tenure.

Despite the friction, Chelsea sources say the club's leadership retained a high regard for Maresca's work with the players, and he remained a popular figure in the dressing room. The club believe the instability following his exit was a major factor in their subsequent poor form and failure to qualify for European competition.

Maresca had shown openness to an early contract renewal during the season, amid reported interest from Juventus in Serie A.

His credentials for the City job are strong. He served as an assistant to Guardiola during City's historic Treble-winning 2022-23 campaign and played a significant role in the club's academy before stepping up to the first-team staff. After leaving City in 2023, he took charge of Leicester, guiding them to Premier League promotion in his sole season before his appointment at Chelsea, where he lifted the Club World Cup and the Conference League.

What is the latest on Elliot Anderson?

City also had an opening bid for Nottingham Forest midfielder Elliot Anderson rejected last week. The 23-year-old England international has emerged as the club's primary midfield target following the departure of captain Bernardo Silva.

Sources say City are expected to return with a second offer and are prepared to pay a fee that could surpass the record amount paid for a British player. Forest owner Evangelos Marinakis is considered a determined negotiator and is understood to want more than the £105 million Arsenal paid for Declan Rice from West Ham United in 2023.

Anderson is currently representing England at the World Cup. England manager Thomas Tuchel has indicated that squad members will be permitted to finalise transfer agreements, provided doing so does not significantly disrupt the team's preparations.

BBC Sport has previously reported that Anderson is inclined to join City rather than rivals Manchester United.