Gary Rowett has been lined up by Stoke City to become their new manager.
City, who were linked with Rowett earlier this year, instead appointed Paul Lambert, but following their relegation from the Premier League, Lambert left the club and Stoke are now turning again to Rowett following Derby's failure to secure promotion.
The Daily Telegraph is reporting that talks are ongoing and that a compensation package could be agreed in the next 48 hours.
The Rams have decided to slash their wage bill following their play-off disappointment, and with Rowett having signed a new contract in January, compensation could well be more than £2 million.
Rowett was appointed by the Rams in March 2017 after he had been controversially sacked by Birmingham City.