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Norwich chief executive David McNally has revealed the club are in the process of looking for a new manager as Paul Lambert looks set to move to Aston Villa.
The 42-year-old Lambert had his resignation request rejected by the Norwich board as his representatives were locked in talks with Villa and he has now been placed on gardening leave from Carrow Road.
McNally was responding to days of speculation over Lambert's situation and confirmed both clubs are now in talks over compensation.
"We are looking for a new manager, that is likely what we concentrate on in the next few weeks," McNally told Sky Sports News.
"We were in a situation where we were approached by another club to speak to Paul Lambert, we didn't grant them permission and we were very clear we wanted to keep our manager who has been incredibly successful.
"When it was indicated by our manager that he would like the opportunity to speak to this particular club the dynamics changed, and then it was about talking to them about compensation, agreeing compensation and sorting out a time frame, and we are still in that process."
McNally praised Lambert's contribution during his time at Carrow Road but is hoping the situation can be resolved as quickly as possible.
He said: "Paul Lambert has been fantastic for this football club for three years and he will quite rightly take his place in Norwich City history and we will always be very grateful to Paul for his achievements here.
"Paul did tender his resignation but we haven't accepted it - that is our right and we will attempt to get to a conclusion on this. The lawyers will be involved and we will see if we can get through this as quickly as possible - and we (can) focus on our search for a new manager."
Cardiff boss Malky Mackay and Celtic chief Neil Lennon have been made early favourites to replace Lambert at Norwich but McNally revealed the club have made no approach for a manager at present and will appoint someone who meets their criteria.
"It is interesting, I've seen it reported today that we have contact both those clubs about their particular managers but we haven't, I'd like to put that on record," he said.
"We will look at the market and it is about having a manager who is hungry, committed and we will need to check out their knowledge, skill, experience and their attitude really. Those are attributes that are important to us, and Paul Lambert's ticks all of those boxes."
McNally was more bullish in his response to striker Grant Holt's declaration on Twitter that he still wished to leave Carrow Road over the summer.
Holt, 31, scored 15 league goals last season but had a transfer request rejected last month and has taken to Twitter this morning to confirm he wants to leave a club he joined back in 2009.
"Just to stop the rumour mill again. I have expressed to the board and the CEO that I want to leave the football club. Due to disagreements," he wrote.
"I have loved my 3 years at the club and it sadness (sic) me to right (sic) this but want use (sic) to here (sic) it from me first."
Despite Holt making his position clear, McNally reckons the Canaries skipper will still be at the club when the new season gets under way.
He said: "We are delighted he has loved it here, we have loved every moment of Grant Holt being here.
"Seventy goals in three seasons, every level he has played at he has scored goals, 17 goals last year, 15 in the Premier League and a couple of cup goals thrown in.
"What a fantastic performance, our captain, our talisman. He is a fans' hero, he won the player of the year trophy three years in succession - he is not for sale."
McNally also claimed the costs of replacing someone like Holt would cost the club a lot of money and also suggested no players have to be sold in the off-season.
"If we were hypothetically forced into the position to sell somebody with such a record, what is the replacement cost?" he said.
"It is certainly bigger than the total I've seen quoted in relation to the club that Paul Lambert might be talking to, it would be a huge figure.
"But I stress for all the Norwich City supporters out there that Grant Holt is not for sale.
"None of our senior players are for sale, none of our first-team squad players are for sale.
"We are in a very, very healthy situation - probably the best financial health we have been in for 109 years so we don't need to sell anyone."