Compensation deal reached for Hughes

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Hughes was given permission to speak to City on Monday after the club indicated they wanted him to succeed Sven-Goran Eriksson.

The club said in a statement: "Blackburn Rovers can confirm they have reached an agreement with Manchester City on compensation terms for Mark Hughes. As a consequence the club have given Manchester City permission to speak to Mark."

Blackburn are understood to have set a figure of £5million compensation for Hughes and his backroom staff and have now agreed a settlement with City.