Hughes tipped to take Fulham job
The former Wales and Manchester United striker, 46, would succeed Roy Hodgson, who moved to Liverpool this month.
Hughes was named as the overwhelming favourite for the job by London bookmaker William Hill.
"We are hopeful of making an announcement about our new manager in the next 24 to 48 hours," a Fulham spokesman said.
Fulham owner Mohamed Al Fayed moved for Hughes after missing out on Dutchman Martin Jol whose club Ajax Amsterdam refused to let him leave.
Hughes, who had a glittering playing career which included a spell at Fulham's west London neighbours Chelsea, began his managerial career with Wales in 1999 and managed Blackburn Rovers before taking over at City in 2008.
Fulham enjoyed one of their best seasons in 2009-10. They finished 12th in the Premier League and reached the Europa League final which they lost to Atletico Madrid.