Nottingham Forest next manager: Sean Dyche verbally agrees to replace Ange Postecoglou at the City Ground

Sean Dyche has agreed verbally to take over as Nottingham Forest's new manager. 

Negotiations progressed late on Sunday night, with both parties keen to sort a deal quickly, and in time for Dyche to have some time preparing the team before Thursday's Europa League match against Porto.

There are still some final legal details to be sorted, Sky Sports News has been told, and the paperwork is yet to be signed, but he could be confirmed in the role later on Monday.

Forest owner Evangelos Marinakis had been considering several candidates including Dyche - a former Forest trainee as a player - Roberto Mancini and Marco Silva to replace Ange Postecoglou, who was sacked on Saturday after just 39 days in charge.

Marinakis has been looking at several names and has a long-term admiration for Fulham boss Silva since he managed his Olympiacos team.

But Sky Sports News has been told Forest would struggle to pay compensation for any new manager right now because of their PSR restrictions, which had not budgeted for three different managers in the same season, especially after just eight games.

Forest have already paid significant compensation to Nuno Espirito Santo and his backroom staff, who were sacked last month, and now face a similar, hefty bill for sacking Postecoglou and his coaches.

Dyche and Mancini would not require compensation, but Silva would not come cheap from Fulham despite his contract currently expiring next summer. Fulham have not had any approach for the Portuguese.

Why next appointment is crucial for Marinakis

Marinakis knows this next managerial appointment is key in trying to produce some stability and belief in the dressing room and among the supporter base after a damaging period for the club.

In that regard, Forest's hierarchy currently believe Dyche is the best man to steady the ship, organise and motivate the players, and crucially keep the club in the Premier League despite having ambitions of finishing further up the table.

Another key demand from the owner is for whoever takes over to maximise the significant investment that was made in the playing squad in the summer.

Forest spent more than £180m in the transfer window, and £130m of that talent wasn't in the matchday squad against Chelsea. This was another area of dispute between the owner and Postecoglou, Sky Sports News has been told.

Marinakis' busy start to the season

August 15: In the first week of the Premier League season, Nuno Espirito Santo admits his "unbalanced" side have a "major problem" as the Premier League returns, warning they are "very, very far" from where they should be.

August 15: Forest then advance on a quadruple deal for Omari Hutchinson, Douglas Luiz, James McAtee and Arnaud Kalimuendo.

August 22: A week later, Nuno says his relationship with Marinakis is "not the same" and admits "where there's smoke, there's fire" in response to reports his position at the club is under threat.

August 22: Marinakis is understood to be "baffled" by Nuno's comments, and there has been no intention of sacking him as the club's manager.

August 24: Nuno takes charge of Forest's 1-1 draw at Crystal Palace - and calls for a goalkeeper and two full-backs to complete his squad in the transfer window.

August 29: After Forest's Europa League draw, Marinakis says Nuno is the "right man for the job" and "everything is solid" between him and the head coach. He also admits there are talks planned during the international break.

August 31: In what would end up being his final interview as Forest boss, Nuno reveals his desire to stay on in the job and says there was direct communication with Marinakis.

September 1: Forest deliver on Nuno's demands for two full-backs and a goalkeeper on Deadline Day - completing deals for Nicolo Savona, Oleksandr Zinchenko and John Victor, while winger Dilane Bakwa also joins.

September 8: Nuno is sacked as Forest head coach.

September 9: Forest move quickly to appoint Ange Postecoglou as Nuno's successor, with the Australian seen at the Forest training ground by lunchtime.

October 18: Postecoglou is sacked after failing to win any of his eight matches in charge. Advanced talks with Sean Dyche revealed just hours after Ange exit.

Nottingham Forest's upcoming fixtures ...