Taxi for Hughes: Thaksin wants Blackburn boss to drive Manchester City to the top

Hughes will take his close-knit backroom staff to Eastlands with him - highly-rated No 2 Mark Bowen and former Chelsea goalkeepers Eddie Niedzwiecki and Kevin Hitchcock.

City expect an appointment, to be made by incoming executive chairman Garry Cook, will follow once compensation with Blackburn has been agreed.

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Mark Hughes

With current boss Sven Goran Eriksson seemingly bound for Mexico, they hope to call a press conference for Thursday.

All that remains is to agree a buy-out with Blackburn and a package should be hammered out within 48 hours.

Discussions between the clubs are said to be 'cordial', with Rovers accepting it is time for Hughes to move on after an outstanding stay at Ewood Park.

Talks with Hughes progressed quickly over the weekend after permission was granted by the club.

There is still a chance that Chelsea may hijack City's bid - Hughes remains 4-1 with the bookies to go to Stamford Bridge.

However, he is said to be impressed with City's ambition and their new-look set-up.

He was the first choice of former Nike supremo Cook, who will take up his post by the end of this week.

Owner Thaksin Shinawatra has endorsed the move.

A close aide speaking from Thailand said last night that Shinawatra is 'thrilled' at the prospect of capturing Hughes.

"The owner believes people will start to understand now his vision for City. He doesn't want to settle for second best. That is why Mark is top of the pile. He is impressed with the job he has done on limited resources at Blackburn. Now let's see what he can do with real firepower."

There is still a risk that Chelsea could come in, but Sportsmail understands Roman Abramovich does not share the enthusiasm of senior board members, including Peter Kenyon, for the former Wales coach.

Former Manchester United, Chelsea, Barcelona and Bayern Munich striker Hughes has led Blackburn to two top seven Premier League finishes in four years, surviving on his skilful plundering of he transfer market with bargain captures such as David Bentley, Christopher Samba and Roque Santa Cruz, who scored 22 Barclays Premier League goals in his first season.

Shinawatra has agreed to give Hughes a vast transfer budget and is believed to have rubber-stamped City's pursuit of Brazil striker Jo, 21, who will join from CSKA Moscow in what will be one of the biggest transfers of the summer.

Hughes is said to be 'relishing' the chance of leading City into the UEFA Cup and challenging for a top six finish.

Top of his agenda will be keeping men such as Micah Richards and Joe Hart.

"He's not interested in selling the best players and will hope they're excited about working for him," said a friend.

He will find an ally in Cook, who will be responsible for player budgets and hopes to build on City's Youth Cup success, where they beat Chelsea in the Final.

In a dramatic twist late last night, City skipper Richard Dunne - apparently destined for Portsmouth - may now stay with City after the players learned of Hughes' likely arrival.

Portsmouth believed they had stolen ahead of Spurs to land the Republic of Ireland defender.

Hughes is believed to be keen to keep Dunne, but only if he shows the necessary desire to stay.