Norwich chief executive David McNally has revealed the club are in the process of looking for a new manager as Paul Lambert looks set to move to Aston Villa.
The 42-year-old Lambert had his resignation request rejected by the Norwich board as his representatives were locked in talks with Villa and he has now been placed on gardening leave from Carrow Road.
McNally was responding to days of speculation over Lambert's situation and confirmed both clubs are now in talks over compensation. "We are looking for a new manager, that is likely what we concentrate on in the next few weeks," McNally told Sky Sports News.
"We were in a situation where we were approached by another club to speak to Paul Lambert, we didn't grant them permission and we were very clear we wanted to keep our manager who has been incredibly successful.
"When it was indicated by our manager that he would like the opportunity to speak to this particular club the dynamics changed, and then it was about talking to them about compensation, agreeing compensation and sorting out a time frame, and we are still in that process."
McNally praised Lambert's contribution during his time at Carrow Road but is hoping the situation can be resolved as quickly as possible.
He said: "Paul Lambert has been fantastic for this football club for three years and he will quite rightly take his place in Norwich City history and we will always be very grateful to Paul for his achievements here.
"Paul did tender his resignation but we haven't accepted it - that is our right and we will attempt to get to a conclusion on this. The lawyers will be involved and we will see if we can get through this as quickly as possible - and we (can) focus on our search for a new manager."
Cardiff boss Malkay Mackay and Celtic chief Neil Lennon have been made early favourites to replace Lambert at Norwich but McNally revealed the club have made no approach for a manager at present and will appoint someone who meets their criteria.
"It is interesting, I've seen it reported today that we have contact both those clubs about their particular managers but we haven't, I'd like to put that on record," he said.