Swansea City close on Barnsley's Michael Duff after Russell Martin leaves for Southampton

Russell Martin led Swansea to 15th in the Championship in his first season at the helm and then 10th in his second campaign

Swansea City are hoping to name Barnsley's Michael Duff as their new boss after Russell Martin's move to Southampton was finally confirmed.

Martin agreed to become Southampton manager in May, but his move was held up by a dispute over compensation due to Swansea for his services.

He has been appointed before Saints' return to pre-season training next week even though that dispute continues.

Swansea, meanwhile, are working on a deal for Duff.

The former Northern Ireland defender, 45, could be in place in time for the start of Swansea's pre-season preparations, with the Welsh club's players due to return to training on Friday.

Duff took over at Barnsley on a three-year contract in June 2022 and led the Tykes to the League One play-off final in his first season in charge.

Swansea will have to pay compensation to secure the former Cheltenham Town manager's services.

Duff won the League Two title with the Robins in 2020-21 and led them to their best league finishing position in the following campaign, when they ended up 15th in the third tier.

Michael Duff's Barnsley side were beaten in last month's League One play-off final by Sheffield Wednesday

He has emerged as the leading contender to succeed Martin, who has left Swansea after two years in charge.

Martin, 37, will take on the challenge of leading a rebuilding job at Southampton following their relegation from the Premier League in 2022-23.

He has agreed a three-year deal at St Mary's, with his appointment confirmed despite the fact that the disagreement over compensation is still to be settled.

Southampton's league status has been at the centre of the dispute over how much compensation they would have to pay for Martin, whose contract at Swansea ran until 2024.

Martin's Swansea deal featured differing release clauses depending on which club came in for him.

BBC Sport Wales understands the contract stipulated that a Championship side wanting to recruit Martin would need to pay Swansea about £1.25m in compensation, whereas a Premier League club would be required to pay in the region of £2m.

Swansea argue Southampton must pay the higher figure because they moved for Martin before the Premier League season ended, while the Saints believe they should trigger the release clause for second-tier clubs.

Southampton are understood to have paid some compensation to get the Martin deal over the line, but Swansea continue to argue they are entitled to more.

"The club stands firm in our belief that we are owed full compensation for Russell, and we will continue working diligently and strategically to protect the best interests of the club," a Swans statement said.

"Swansea City would like to place on record its thanks to Russell for his work during his time in SA1.

"The club will update supporters regarding a new first-team coaching staff in due course."

The Saints will also have to pay compensation for a number of members of Martin's Swansea backroom team, with assistant boss Matt Gill and goalkeeping coach Dean Thornton among those expected to join him on the south coast.

Their exits from Swansea are yet to be confirmed, however.