Manchester United are locked in talks with Sporting CP over the hiring of Ruben Amorim, as the Portuguese club hold out over compensation payments for their manager and his coaching staff.

After sacking Erik ten Hag on Monday, United’s hierarchy moved quickly to identify Amorim as the next manager at Old Trafford.

In an official statement, Sporting notified the Portuguese financial regulator, with the club listed on the stock market, of United’s position as negotiations continue over the €10m (£8.3m) release clause.

It is understood the eventual fee may rise higher than that with Sporting finalising fees for any backroom staff exits as well. The club have demanded an additional €5m for their coaching staff, and want an additional fee to sanction Amorim’s immediate release.

The Portuguese champions said on Tuesday: “Manchester United FC expressed interest in hiring coach Ruben Amorim, and the board of directors of Sporting SAD referred to the terms and conditions provided for in the employment contract in force between the company and the coach, specifically for the respective termination clause and for the amount of €10,000,000.00.”

Amorim could now be in place by the time United host Chelsea in Sunday's Premier League match, if talks can be resolved swiftly. He took charge of Sporting against Nacional in the Portuguese Taça da Liga (League Cup) quarter-final on Tuesday night, in what is being viewed as potentially his last game for the club.

He remained coy after the game, saying: “The club talks to another club, is talking to another club, and then you take the next step with the coach. And whether I want to go or not, I’ll say later. That’s the decision we’re talking about here. I won’t say.”

United first contacted the 39-year-old’s camp at the start of October – before the last international break – where they were initially expected to sack Ten Hag in a London meeting of the club’s hierarchy. Amorim was immediately open to the idea of managing United.

But club representatives came away believing there were two potential issues. One was that the coach’s preference was not to leave Sporting in the middle of a campaign and the other was the size of the clause.

Amorim’s representatives even floated the idea of agreeing a deal whereby he would join United at the end of the season – but United’s new football leadership have been adamant they want the new manager to start as soon as possible.

The Old Trafford charm offensive naturally went to another level after Ten Hag was sacked on Monday, although principles of discussion were already in place.

Amorim is said to be genuinely torn on leaving at this stage and doesn't want to be seen as someone who constantly departs jobs mid-season. That already happened on leaving Braga to join Sporting in 2020, but the coach is nevertheless aware of the opportunity United represents.

Sporting, meanwhile, have already started considering alternatives, which speaks to the state of discussions.

Although Amorim has been seen as a potential candidate for the Manchester City job, those close to him state that he sees that situation as “too subject to change”.

Pep Guardiola might decide to stay, or the club could even face relegation following the outcome of their Premier League hearing. City insist on their innocence.

Some of these issues have also been raised in discussions with United, along with the quality of the squad and how Amorim's three-man defence would fit.