John Eustace is poised to become the new manager of Derby County after his £500,000 compensation clause at Blackburn Rovers was triggered by the Championship club.

Eustace will hold talks with Derby’s hierarchy on Monday night and is expected to be confirmed as Paul Warne’s replacement in the next 24 hours.

As first revealed by Telegraph Sport on Saturday, Eustace emerged as Derby’s first-choice target following the dismissal of Warne on Friday.

A former Derby player, he will make an emotional return to Pride Park after becoming increasingly frustrated by Blackburn’s Venky’s ownership.

Eustace had 18 months left on his Rovers contract, but Derby have activated the clause that enables them to hold talks.

Blackburn granted the 45-year-old permission and Eustace is set to be in attendance for Derby’s home game against Oxford on Tuesday night if negotiations progress.

His departure from Ewood Park will raise further scrutiny on Venky’s, the club’s owners for the last 14 years who have been a constant source of exasperation for supporters.

Blackburn are currently sixth in the Championship but Eustace has opted to leave for Derby, who are in the relegation zone.

In a statement, Blackburn said: “Blackburn Rovers can confirm that head coach John Eustace has requested permission to speak with another Championship club, following the activation of a clause in his contract.

“The club is extremely disappointed by John Eustace’s request to hold discussions with another club at such a crucial stage of the season, but this has now been reluctantly granted.

“With significant investment being made during the January transfer window, with six new additions, several of whom impressed during yesterday’s FA Cup fourth-round tie against Wolves, the board and ownership feel the club are in a good position to challenge for one of the play-off places this season.

“With the squad bolstered, key players returning from injury and Rovers currently in a strong position in the Championship, the club and players remain focused on achieving the best possible outcome this season.”