Brighton & Hove Albion will allow Gustavo Poyet to talk to Wolverhampton Wanderers over the club's management vacancy.
However, Championship side Brighton will demand £2m in compensation if Wolves wish to appoint the Uruguayan, according to The Mirror.
Wolves chief executive Jez Moxey is believed to have made contact with Brighton yesterday evening to ask for permission to hold discussions with Poyet.
Steve Bruce remains the bookmakers' favourite to take the job, while reports this morning have suggested that Reading boss Brian McDermott has entered the race.