Manchester City have clinched a deal for Blackburn Rovers manager Mark Hughes.

City were last night celebrating the capture of Hughes after the club showed great determination to land their man by agreeing a staggering £4.6million compensation deal with Blackburn Rovers.

City owner Thaksin Shinawatra welcomed Hughes to City, subject to personal terms being agreed at a dinner with senior board members in London last night when a four-year deal was expected to be finalised.

"He's an outstanding manager who has achieved many things with Blackburn," Thaksin told the Daily Mail last night. "Mark was always the first choice of our new executive chairman, Garry Cook. Together they will make a great team. They will both prove to be excellent acquisitions, I'm sure.

"These are exciting times for Manchester City and I hope the supporters can understand that I share their goals.

"That sometimes means making ruthless decisions. Now we can go forward to a new era, with a new management structure and great hope and ambition."

The former Wales boss is expected to be paid in the region of £3m a year - £500,000 more than the out-going Sven Goran Eriksson.