However everything hinges on prospective owner Thaksin Shinawatra getting a 75% stake in the club and taking it into private ownership and City insist that only then will they make any managerial announcement.

Chief executive Alistair Mackintosh told official website, www.mcfc.co.uk: "The Board notes the media speculation concerning the managerial position at the club. Discussions are ongoing with managerial candidates and once the offer becomes or is declared unconditional in all respects, the club expects to announce the appointment of a new manager."

The board have already recommended shareholders accept Shinawatra's £81.6million bid and the offer document has been sent out.

The former Thai prime minister currently has a 55.9% stake through pledges from directors and former chairman Francis Lee. The only other major shareholder is Sky, who own 9.9%. Should they come on board that would take Shinawatra up to 64.9% and closer to the 75% mark where he could de-list the company.

However there is some disquiet about Shinawatra's background given that some of his assets have been frozen in Thailand and he faces corruption charges. But he maintains he can prove his innocence and his advisors claim his business in Thailand will not impact on his proposed City takeover.

Shinawatra has already promised the new manager a bumper transfer kitty, believed to be around £50million.

Eriksson is understood to be very likely to commit himself to a three-year deal shortly but the club attempted to play down rumours of the Swede's impending arrival.

City are hoping the new man will be in place before the players return to training on July 4.