Southampton boss Mauricio Pochettino will delay new contract talks until the summer.
The Telegraph says Pochettino will put off deciding whether to extend his contract at Southampton until the end of the season, keeping open the possibility of succeeding Tim Sherwood at Tottenham Hotspur.
Sherwood is resigned to losing his job as head coach this summer and intends to refuse an offer to return to his former role as the head of the club's academy.
It is understood that Sherwood learned of his fate at a meeting with Levy and Baldini before Monday's 5-1 win against Sunderland. It creates a question over how any compensation would be handled, with the club still ready to keep Sherwood employed.
