John Carver is to land a substantial pay-off from Newcastle United, report The Times.
The paper claim the sacked boss is expected to be paid £500,000 as a result of his dismissal from the club.
It is also claimed dismissed first team coach Steve Stone will be paid £200,000 in compensation for the termination of his contract.
The BBC reported earlier this week that Carver and Stone had been told their services were no longer required by the club.
Newcastle announced on their official website subsequently that former England boss Steve McClaren has been appointed as manager.
Carver oversaw a woeful run of results while placed in charge at Newcastle last season following Alan Pardew's resignation to go and join Crystal Palace, and nearly got the club relegated to the Championship.
He had wanted to continue as Newcastle boss on a permanent basis, but the financial payout he will receive will surely soften the blow of his sacking.