Coventry have revealed discussions are "progressing well" with both Steven Pressley and Falkirk as they look to secure the manager's services.
The Sky Blues were granted permission to hold talks with Pressley yesterday having identified the Scot as their number one choice to replace Mark Robins following his switch to Huddersfield three weeks ago.
And they have spent the past 24 hours attempting to iron out personal terms as well as a compensation package with his current Scottish First Division employers.
Coventry development director Steve Waggott said: "We've held very positive talks with Steven Pressley and Falkirk today and they are progressing well.
"We will continue working on the deal in order to reach a conclusion that is good for all parties."
City, chasing a play-off place in npower League One, are looking for their third permanent manager of the season and fifth in total following Robins, Andy Thorn - sacked in late August - and caretaker bosses Richard Shaw and Lee Carsley, who has won three and lost two of his five matches at the helm in recent weeks.
Former Scotland defender Pressley, 39, enjoyed a brief playing spell with the Sky Blues during the 1994/95 Premier League season.
Meanwhile Falkirk technical director Alex Smith would be happy to take over from Pressley.
Smith and assistant manager Stevie Crawford are now expected to take the team for Saturday's trip to Irn-Bru First Division leaders Morton.
And the 73-year-old - who has twice won the Scottish Cup with St Mirren and Aberdeen - says he fancies a third shot at the trophy and could even be persuaded to take the job on a full-time basis.
But Smith conceded that Falkirk chairman Martin Ritchie may decide to place his faith in youth once more and hand the reigns to Crawford, 34 years his junior.
Falkirk face Hibernian in their Hampden semi on April 13.
He said: "Steven has one or two things to tidy up with Coventry but I think he will be on his way.
"So I will be taking things with Stevie Crawford this weekend and we'll take it from there.
"I wanted to help the club and I expect we will go along on this basis until the end of the season.
"If the club were to ask me to take over on a permanent basis, that wouldn't be a problem for me. When you are a manager for a long time like I was, you do miss certain things when you give it up. Things like the big decisions.
"We have got a big game at Hampden and the rest of the league programme too, so there is a lot going on.
"But Stevie Crawford has also stayed on and being an ex-manager with East Fife himself, the club might decide to give him the opportunity."
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