Fabio Capello's appointment as England manager has been approved by the FA board and the Italian is now set to sign a contract worth an astonishing £6.5million a year.
Final discussions on the details of Capello's contract will take place tomorrow, but sources close to the FA board say they have approved a deal worth £4million annually - after tax.
That will place Capello's earnings on a par with England captain John Terry's £130,000-a-week, and shows the FA are willing to spend big to secure the 'world-class' coach they have been looking for.
By contrast, Sven-Goran Eriksson was on a deal worth £4million a year and Steve McClaren on £2.5million - but the failure to qualify for Euro 2008 cost the FA at least £12million and probably considerably more in terms of damage to the England brand.
It is understood Capello wants to bring three or four fellows Italians with him for his coaching staff, including his trusted aide Franco Baldini as his assistant. The 61-year-old has also expressed a desire to have English coaches as part of his set-up as well, and will decide who these should be at a later date.
Contrary to some reports however, Baldini will not fulfil the role of the FA's technical director.
FA executives spent the day in talks with Capello's advisors going through the details of the contract, and those will continue tomorrow but the deal is all but done.
FA director of communications Adrian Bevington said: 'Discussions have continued throughout the day between the FA and Fabio Capello's advisors.
'The FA board has also today approved Capello's appointment as England manager subject to the successful conclusion of these contract negotiations.
'These will continue tomorrow. I want to stress that there are no problems and that we are going through the necessary process to reach a successful conclusion.'
The FA board approved the appointment through a conference call, although at least one member felt the decision could have waited until next week's full board meeting on December 19, given the size of the contract.
FA chief executive Brian Barwick is keen to get the deal sewn up however and sees little to gain from delaying the decision. Barwick is also comfortable with Capello's plans for his coaching staff, especially since the Italian himself proposed having English coaches as part of his set-up.
There will not be an immediate announcement of who these might be - candidates suggested have included Stuart Pearce and Alan Shearer - as it will be Capello who chooses them.
Baldini, who has worked with Capello at his former clubs Real Madrid, AC Milan and Juventus, told the BBC: 'Capello will be England coach for sure.
'I understand the FA has, in principle, said 'yes' to me doing this job as well. If I do not, I think Capello will still be England coach, but maybe he will be a little less comfortable.'
Capello described the England job as a 'beautiful challenge' following McClaren's departure in November, and has been given the backing of a number of senior figures in football.
Eriksson believes the FA 'cannot go wrong' with Capello.
He said: 'I have known Fabio Capello for many years. I was his opponent in Serie A for 10 years.
'He is a very good man and manager. His record speaks very clear. He has won titles in Italy.
'When you talk about that level (international) and mention Mourinho, Lippi, Capello, Ferguson and Wenger you cannot go wrong as they are all good managers.
'Of course Capello will treat the players right. But all the people I have told you about can do it.
'If you are winning big titles you always have big stars in your team. Capello is one of the best managers you can find.'
Capello has only limited English but Eriksson added: 'That won't be a problem. It certainly wasn't for me as I spoke to him in Italian!'