Ralf Rangnick is the new favourite to take charge of West Bromwich Albion after the Baggies were put off by £2 million ($3.19 million)-plus compensation demands from Birmingham City for Chris Hughton, Press Association Sport understands.
Rangnick has been out of work since September after stepping down from his post at Schalke because of exhaustion.
But it is understood he is ready to return to management and has impressed Albion chairman
Rangnick had two spells at Schalke, leading it to the semi-finals of the UEFA Champions League in 2010-2011, in addition to a four-year stint at Hoffenheim.
Hughton came close to landing the Baggies job 15 months ago after the sacking of
Now Birmingham's compensation demands appear to have ended Hughton's chances of moving to the Hawthorns if he harboured any ambitions in that direction.
It is determined to drive a hard bargain after losing the services of
Albion also held two rounds of talks with former Chelsea boss