Wigan Athletic chairman Dave Whelan has confirmed that manager Roberto Martinez is free to discuss personal terms with Everton after agreeing compensation with the Toffees.

Martinez led Wigan to FA Cup success last season but was unable to avoid the drop with the Latics, and subsequently offered a letter of resignation to Whelan.

Whelan revealed that he had given Martinez permission to meet with Everton chairman Bill Kenwright last week, and the two clubs have now agreed a fee to buy out the last year of the Spaniard's contract.

"I've reached some terms with the chairman, Bill, of Everton about six o'clock this evening. He can now talk to Everton because Bill and myself have sorted the compensation," Whelan told BBC Radio 5 live.

"He'd spoken to Everton because I gave them permission. When he came back and told me how it had gone, it had gone very well and he was probably in the last two or three on the list.

"Then the chairman rang me and discussed the compensation deal with me, and we agreed that this evening."

Porto coach Vitor Pereira and former Schalke boss Ralf Rangnick were also thought to be in the running for the job, left vacant after David Moyes agreed to join Manchester United.