Town have asked Hibernian for permission to speak to Tony Mowbray regarding the Portman Road managerial vacancy. Former skipper and coach Mowbray was immediately linked with a return to the club when news of Joe Royle's departure broke last Thursday.
If the Blues are given permission to speak to Mowbray by the SPL club — which seems likely — chairman David Sheepshanks will call a meeting with the 42-year-old Easter Road boss as soon as possible. Town are keen to get the new manager in place before pre-season training starts on June 26th.
Although the request is likely to see Mowbray become the hot favourite to take over from Joe Royle, Town could also ask for the go-ahead to speak to other managers currently in work, with Colchester's Phil Parkinson also high on the board's wish-list.
The Blues' request to Hibs is understood to be the first such approach, contrary to reports which claimed earlier contact with Terry Butcher — who joined Sydney FC yesterday - and Preston's Billy Davies. The Lilywhites' boss was understood to top Town's list, however, the Scot is being targeted by Hearts and other clubs which currently look more attractive propositions than the Blues.
Mowbray is understood to be keen to return to former club Middlesbrough where he is hugely popular with fans after his spell as a player in the 1980s. The Teessiders have denied reports claiming that Terry Venables is being lined-up to take over from Steve McLaren and Mowbray may well be in the running for a return to his native North-East.
The former Celtic player left Portman Road to take over at Hibs two years ago and has a management record at Easter Road which reads: Played 93, won 44, lost 35, drawn 14.
Should Mowbray ultimately be offered the Town job and decides to take it, the Edinburgh club would demand compensation for the remaining two years of his contract. Although the figure is likely to be a six-figure sum, this is not likely to be beyond the Blues, contrary to reports elsewhere.
Mowbray's assistant at Hibs is another former Blue Mark Venus. The ex-central defender could also move back to Portman Road if Mowbray takes the job, with compensation also due on the remaining two seasons of Venus's contract.
Meanwhile, Phil Parkinson has spoken for the first time regarding his position. The Colchester manager has been linked with a number of bigger clubs this summer including Town, Charlton and Derby County.
Parkinson said: "I am in no rush to leave, but if the chairman said he had given me permission to speak to someone, I would listen to what they had to say - like anyone else would."
"It is exciting times at Layer Road. We have just been promoted there is a new stadium on the way - although it will not be ready for next season - and we have a good squad of young players.
"We will be looking to improve things in the summer but will also concentrate on getting one or two of the players signed on new contracts. It has been a great achievement for the club this season and there are exciting times ahead."
Former Republic of Ireland manager Brian Kerr is reported to have applied for the Town job, while Frank Yallop, head coach with Canada, is not interested in being considered. Another ex-skipper Mick Mills is also not thought to have applied for the position this time around.
The Blues have received more than 40 applications, one of which is likely to have been from ex-Coventry boss Gary McAllister, keen to get back into football after a family illness forced him to resign his position with the Sky Blues in 2004.