Vincent Kompany [1296x729]
Vincent Kompany [1296x729] (Credit: Ian Cook - CameraSport via Getty Images)

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Burnley and Bayern Munich have reached a deal in principle for manager Vincent Kompany, a source told ESPN.

Kompany, 38, is set to sign a three-year deal at the Allianz Arena as a replacement for Thomas Tuchel.

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Bayern are set to pay Burnley around £10 million ($12.7m) in compensation. The framework of a deal has been agreed after a week of talks between the two clubs.

Kompany, who signed a contract extension at Turf Moor in May 2023, has already verbally accepted an offer from the Bundesliga side. It will be the former Manchester City defender's third managerial appointment following spells at Anderlecht and Burnley.

He won promotion to the Premier League in his first campaign at Turf Moor but finished 19th this season as Burnley were condemned to an immediate return to the Championship.

Bayern have turned to Kompany after a string of rejections during their search for Tuchel's replacement. Xabi Alonso, Julian Nagelsmann and Ralf Rangnick all turned down the opportunity to take over. Negotiations with Tuchel to stay on also broke down.

Bayern have suffered a disappointing season, finishing outside to the top two in Germany for the first time since 2011. They reached the Champions League semifinal, but were edged out over two legs by Real Madrid.