MANCHESTER City will have to cough up close to £5 million if they want to install Mark Hughes as their next manager.

That is the figure Blackburn Rovers are believed to be demanding in compensation for Hughes and several key members of his backroom team.

City made an official approach for Hughes yesterday morning, less than an hour after Sven Goran Eriksson's much publicised departure from Eastlands was finally confirmed.

Rovers chairman John Williams then reluctantly granted the Blues permission to speak to Hughes after the Welshman indicated his interest in the post, although those talks will only be allowed to take place once City agree to meet Rovers' sizeable compensation demands.

The Lancashire Telegraph understands that figure is close to £5 million, with Rovers wanting compensation for the remaining two years on Hughes' contract, plus the likely losses of first team coach Eddie Niedzwiecki and assistant manager Mark Bowen.

City are hoping to appoint a successor to Eriksson at some point later this week and though Hughes appears to be top of their shortlist, Blues owner Thaksin Shinawatra is also thought to be keen on Frank Rijkaard, Roberto Mancini and 'Big' Phil Scolari.

City's move for Hughes came as a bombshell to the Rovers board but once it became clear the 44-year-old was interested in listening to what the Blues had to say, they felt they had little choice other than to grant permission for those talks to take place, subject to certain conditions being met.

In a short statement Rovers said: "Mark has made it clear to the Board he would like the opportunity to talk to Manchester City.

"In view of this the Board have decided reluctantly to give permission, subject to terms and conditions acceptable to Blackburn Rovers being agreed with Manchester City in advance.

"The club will not be making any further comment at this stage."

Although Hughes only signed a new two-and-a-half-year deal with Rovers in November last year, his future at Ewood has remained the subject of intense speculation ever since.

In January, he was heavily linked with the vacant manager's job at Newcastle United, before the Magpies eventually swooped for Kevin Keegan.

Then, more recently, he emerged as a strong contender for the Chelsea job, following the not unexpected dismissal of Avram Grant.

Now City have taken things a step further by making their interest in Hughes official - a move that could yet force Chelsea to play their hand too.