Fulham are confident they will be able to hold on to Mark Hughes as manager and remain convinced he will sign a new two-year deal despite the prospect of an approach from Aston Villa and a break clause in the Welshman's contract that the Midlands club may seek to exploit.
Hughes is the leading candidate to replace Gérard Houllier, who has reached an amicable agreement with Villa over the terms of his exit.
Villa confirmed in a statement that the Frenchman has departed by mutual consent, after "doctors have advised that he will require further time to recuperate" following the health scare he suffered in April, when he was diagnosed with a dissection of the descending aorta.
"I would like to thank Gérard for his considerable efforts over the past nine months and for the dedication, commitment and work ethic he has demonstrated as Villa manager," said Paul Faulkner, the chief executive. "We regret the circumstances of Gerard's departure and, naturally, we wish him well in his continued recovery."
The process of appointing Houllier's successor is already under way and will almost certainly lead Villa to explore the possibility of bringing in Hughes as well as considering the credentials of Steve McClaren and Martin Jol, who are out of work. David Moyes, the Everton manager, is thought to be out of reach.
Hughes is the favourite at this stage, although Fulham are bullish about their chances of holding on to the former Manchester City and Blackburn Rovers manager. They believe Hughes is keen to build on his first season at Craven Cottage, which culminated in an eighth-placed finish in the Premier League and qualification for the Europa League, and expect the lengthy discussions about a new contract to end with him pledging his future to the club.
It is understood, however, that there is a clause in Hughes's current deal, which the 47-year-old was able to activate from and would allow him to walk away from Fulham for a small amount of compensation. Although sources close to Hughes have suggested he is enjoying living in London, there is also a feeling he would be attracted to the prospect of managing a club such as Villa, who have a bigger fanbase and greater spending power.