Southampton are in talks with Scunthorpe over a compensation package for manager Nigel Adkins, reports the Daily Mirror. The 45-year-old has held initial discussions with Saints about becoming Alan Pardew's successor at St Mary's despite Scunthorpe chairman Steve Wharton previously claiming the League One club had withdrawn their offer.

Southampton have since denied issuing Adkins with an ultimatum to resign from his position in order to take over at St Mary's, but compensation has yet to be agreed.

"Southampton have approached our football club in the right manner and the chairman and directors have allowed me the opportunity to speak to Southampton," said Adkins.

"There have been further discussions where we have talked about the possibility of becoming the manager of Southampton. On the back of that any negotiations are private and a lot of things are drawn out.

"If Nigel Adkins leaves Scunthorpe United it should be done in the right manner, and it should be done with the clubs agreeing a compensation deal.

"The fact of the matter is compensation has not been agreed as it stands. One of the scenarios when clubs can't agree compensation is that the manager has an option to resign - that's against my principles and is not being considered.

"Therefore I am still the manager of Scunthorpe and I took training on Thursday morning."