The Daily Mail says Hughes will take his close-knit backroom staff to Eastlands with him - highly-rated No 2 Mark Bowen and former Chelsea goalkeepers Eddie Niedzwiecki and Kevin Hitchcock.
With current boss Sven Goran Eriksson seemingly bound for Mexico, they hope to call a press conference for Thursday.
All that remains is to agree a buy-out with Blackburn and a package should be hammered out within 48 hours.
There is still a chance that Chelsea may hijack City's bid - Hughes remains 4-1 with the bookies to go to Stamford Bridge.
However, he is said to be impressed with City's ambition and their new-look set-up.
He was the first choice of former Nike supremo Cook, who will take up his post by the end of this week.
Owner Thaksin Shinawatra has endorsed the move.
A close aide speaking from Thailand said last night that Shinawatra is 'thrilled' at the prospect of capturing Hughes.
"The owner believes people will start to understand now his vision for City. He doesn't want to settle for second best. That is why Mark is top of the pile. He is impressed with the job he has done on limited resources at Blackburn. Now let's see what he can do with real firepower."