Leicester City and Hull City are haggling over Nigel Pearson's compo fee.

The Sun says the Foxes are involved in a £1million stalemate over Pearson.

Hull are resigned to losing Pearson to the club he left them for 18 months ago but want Leicester's cash-rich board to cough up.

But the Foxes are in no mood to be held to ransom, especially as they also have to pay former boss Sven Goran Eriksson £1m following last month's dismissal.

If they cannot reach an agreement, Pearson - who will get a £8m transfer kitty at Leicester - may be forced to resign as Hull manager.