Wigan manager Roberto Martinez's move to Everton has moved closer after Latics chairman Dave Whelan confirmed the two clubs have agreed a compensation payment.
The Spaniard held talks with Toffees chairman Bill Kenwright last week and a deal has now been agreed to buy out the remaining year of Martinez's contract.
Whelan told BBC Radio 5 Live: "I've reached some terms with the chairman, Bill, of Everton about six o'clock this evening.
"He can now talk to Everton because Bill and myself have sorted the compensation."
Martinez had already held talks, with Whelan's permission, but is now free to discuss contract terms.
"He'd spoken to Everton because I gave them permission," Whelan said.
"When he came back and told me how it had gone, it had gone very well and he was probably in the last two or three on the list.
"Then the chairman rang me and discussed the compensation deal with me, and we agreed that this evening."
Porto coach Vitor Pereira and former Schalke boss Ralf Rangnick had also been linked with the vacancy.