Jose Mourinho has agreed personal terms with Manchester United but Sky sources say some issues remain before a contract is signed.
Both parties have reached a deal on Mourinho's contract length and salary, and Sky's Sport Correspondent Paul Kelso says a three-year deal with an annual salary in excess of £10m a year is expected but unconfirmed.
However, it is understood they are still in negotiations over several unresolved image rights issues.
Both Manchester United and the former Chelsea manager are currently tied into commercial partnerships - and there are fears of a potential conflict as Mourinho's deal with Jaguar could be at odds with the club's seven-year association with General Motors.
Chevrolet, a division of GM, are the club's shirt sponsor.
There is no suggestion that image rights issues will place the new contract in danger, but Sky sources say there may be considerable work to do before Mourinho's appointment is officially confirmed.
They do share some common ground in the form of adidas.
Mourinho is a global ambassador for the sportswear giant, while United are currently locked into a £750m, decade-long deal which came into effect last year.
Talks between the club's executive vice-chairman Ed Woodward and Mourinho's agent Jorge Mendes have been swift and positive - and have mainly taken place by phone and email.
Legal teams for both sides are continuing to work through the image rights issues, which are said to be the final hurdle before Mourinho can put pen to paper on his contract.
An official presentation confirming Mourinho's appointment could be scheduled for later this week.
When he lost his job as Chelsea manager less than six months ago, the west London side had lost nine of their first 16 league games and were only just above the relegation zone.
Despite this, the 53-year-old is regarded as one of the best football managers in the world.
The self-proclaimed "Special One" has won the Champions League twice and league titles in Portugal, England, Italy and Spain, where he managed Real Madrid.
Louis van Gaal's final act as United boss was lifting the FA Cup at Wembley, after his side beat Crystal Palace 2-1 in extra time to win the competition for the first time in 12 years.
He had faced growing criticism after United crashed out of the Champions League in the group phase and then failed to qualify for next season, while some fans complained that the team's style of football was dull and unadventurous.
Van Gaal was sacked on Monday after details of his severance package, believed to be worth about £5m, were finalised.
(Sky News)
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