Scunthorpe have given boss Nigel Adkins permission to speak to Southampton about the vacant managerial post at the League One club.
Adkins, 45, who has steered the Iron to two promotions in four years on a shoestring budget, has emerged as the man the Saints want to replace Alan Pardew, who was sacked on August 30.
A club statement read: "The club has given permission for manager Nigel Adkins to speak to Southampton."
Assistant manager Andy Crosby is expected to follow Adkins to St Mary`s but the two clubs have yet to agree a compensation package.
The club statement continued: "Nigel and his assistant Andy Crosby have agreed terms with the Saints but the club have yet to agree a compensation package with the League One side.
"The club will update fans as and when there's more information."