Sven Goran Eriksson is set to accept a deal with Manchester City this week and will immediately be handed a £50 million warchest by the club's new owner Thaksin Shinawatra.

The Mail on Sunday says Eriksson and Shinawatra are finalising a contract, with the former England manager asking for an annual salary of £2.5 million while Shinawatra is sticking to his original offer of £2m a year over three years, plus £1m in potential bonus payments each season.

Talks yesterday brought both sides close to a resolution and an announcement is expected early this week.

Eriksson's first job will be to complete a detailed audit of the squad with Shinawatra, the controversial former Thai Prime Minister, promising at least £50m worth of funds to renew the team.