Manchester City are close to reaching a financial settlement with Chelsea that will enable them to appoint Enzo Maresca as their new manager.

Chelsea are demanding compensation from City to release Maresca as they believe they have evidence that the Spaniard breached his contract at Stamford Bridge by talking to the club’s Premier League rivals when he was still their manager last season.

It has been widely reported that Maresca informed Chelsea he had been approached by both City and Napoli last winter in the chaotic weeks that led to his surprise resignation on New Year’s Day, a claim that has never been disputed.

Chelsea are adamant they deserve to be compensated for the loss of Maresca, whose departure destabilised a season that ended with them finishing 10th in the Premier League and missing out on European qualification, but they have a good relationship with City and have confidence an amicable agreement can be reached.

The club paid Leicester £8m in compensation to secure the release of Maresca as manager two years ago, and in January made another multi-million pound payment to sister club Strasbourg to bring in Liam Rosenior as the Italian’s replacement.

Chelsea sources have indicated they have sufficient evidence to report City to the Premier League for making an illegal approach to Maresca, but have no plans to do so and are continuing to negotiate with them.

Chelsea have also given consideration to bringing a separate legal claim against Maresca for an alleged breach of contract, but that is likely to be dropped if they reach an agreement with City.

A financial settlement worth over £10m to Chelsea is thought to be the likely outcome with negotiations between the clubs over the finer details ongoing.

City do not return for pre-season training until the middle of next month as they have 19 players away at the World Cup so have some time to get the matter resolved, although Maresca is eager to start work for the club as soon as possible.

Chelsea and City declined to comment.