Chairman Paul Duffen is ready to double Brown's wages to around £1m a year although that will still leave the former Derby County manager as a relative pauper by top-flight standards.

Duffen said: "Discussions are taking place with Phil over a new longer-term contract which will reflect his value to the club and his status as an accomplished manager with Premier League credentials.

"Phil and I have developed both a good partnership and a friendship and I am confident that the deal will soon be done," he added.

Brown initially joined Hull on a short-term contract, but signed a one-year rolling deal last summer after steering the club to Championship safety.

The Tigers also hope to strengthen Brown's backroom staff in the next few days with the appointment of Mark Lillis as youth and reserve team coach.

Lillis, who played for Huddersfield Town, Manchester City and Aston Villa, worked previously with Brown at Derby and also spent 15 months in charge of Halifax Town. He is currently employed as Sammy McIlroy's assistant at Morecambe.

Brown, meanwhile, moved a step closer to completing his third signing of the summer yesterday when Middlesbrough accepted a £500,000 offer for midfielder George Boateng.

Brazilian international Geovanni and Derby striker Craig Fagan have already agreed moves to the KC Stadium and now Boateng is discussing personal terms.

The former Coventry City and Aston Villa star, 32, has spent the last six seasons on Teesside but requested a transfer after losing the captain's armband.

Brown said: "The deal between ourselves and Middlesbrough has been agreed. It's now just a matter of fine-tuning the deal between us and George and that's a process that does take time."

On his own contract talks, Brown commented: "Hopefully, by the end of next month, I should put pen to paper on a three-year deal. There is nothing at this moment in time to report on because we are just talking."

French defender Bernard Mendy has agreed terms with Hull after being released by Bolton and was having a medical yesterday prior to signing a three-year deal.

Another player who is surplus to requirements at Bolton, defender Abdoulaye Meite, could also be moving in the same direction.

Hull have lodged an offer for the Ivory Coast international, who has been frozen out at the Reebok Stadium following an alleged dressing room bust-up with manager Gary Megson during a defeat at Manchester United in March.

Brown also remains in the hunt for Plymouth Argyle's Hungarian winger Peter Halmosi but, although Hull have lodged a bid, they are unwilling to match the Championship club's £3m valuation.

Despite speculation to the contrary, Hull will not be joining the chase for one-time England international striker David Nugent, who is up for sale at Portsmouth due to the imminent arrival of Liverpool's Peter Crouch.

However, the Tigers are still considering the possibility of lodging a bid for Wolves midfielder Seyi Olofinjana after preliminary discussions with officials at Molineux.

Veteran midfielder Henrik Pedersen has been allowed to leave the KC Stadium and return to his native Denmark.

Pedersen, who made 22 appearances for Hull last season, wanted to join his hometown club Silkeborg IF for family reasons.

"There was a year's contract on the table and Henrik asked permission to come out of that," said Brown.

"He wants to continue playing football, but he's promised he will only play for his hometown team back in Denmark and we wish him all the best."

Former Hull and Arsenal midfielder Ray Parlour, meanwhile, has announced his retirement at the age of 35 due to knee problems.

Parlour, who won 10 England caps and three Premier League titles during his time at Arsenal, spent last season training with League Two Barnet, but has not played first-team football since making a final appearance for Hull against Plymouth 14 months ago.

Hull's players will return to England tonight after spending a week involved in high-altitude training in the Italian Alps.

Striker Caleb Folan said: "I wasn't too sure what to expect coming out here, but it's definitely been a rewarding experience. It has been hard work, especially the early morning bike rides."


The Managerial Stakes

New Chelsea manager Luiz Felipe Scolari will earn £5.5m a year at Stamford Bridge while Arsene Wenger's current contract at Arsenal is rumoured to be worth £4.5m a year.

Despite winning the domestic title 10 times and two European Cups, Manchester United manager Alex Ferguson (£3m) is paid less per year than Newcastle United's Kevin Keegan (£4m).

Hull City manager Phil Brown is set to earn £1m a year in the Premier League – similar to Stoke City manager Tony Pulis, West Brom boss Tony Mowbray, and Fulham's Roy Hodgson.

The average wage for a Championship manager is approximately £350,000 a year.