Tottenham are prepared to hand Martin Jol a £4 million compensation package to terminate his contract.

The Times says statements issued after Jol met the board yesterday hinted that an uneasy truce had been agreed, but the fact that the club's accountants have approved severance terms for the Dutchman, who has two years left on his contract, will do nothing to dampen speculation regarding his future.

Tottenham are thought to be in talks with several candidates. Mark Hughes, the Blackburn Rovers manager, has emerged as a surprise option after negotiations with Juande Ramos, the highly regarded Seville coach, came to nothing.