Julen Lopetegui is in limbo after West Ham’s move to replace their manager stalled over Graham Potter’s demand for a two-and-a-half-year contract.

The club’s preference is for Potter to take over until the end of the season, only for uncertainty to flare because of the former Brighton and Chelsea manager’s request for a longer deal. That has left Lopetegui, who was said to be on borrowed time on Monday night, in the awkward position of remaining in his post even though he knows West Ham have decided to sack him.

Lopetegui took training on Tuesday morning and is preparing for his struggling side’s trip to Aston Villa in the third round of the FA Cup on Friday. Yet the Spaniard is well aware that he is on the brink of losing his job – he has spoken to the club’s largest shareholder David Sullivan about the situation – and that led him to cancel a team meal scheduled for Tuesday night.

There is unhappiness in Lopetegui’s camp over the conduct of West Ham’s technical director, Tim Steidten, who has been heavily involved in the search for a new manager.

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Steidten has been staying away from the training ground since last month – multiple sources have said the German has been asked to stay away by Lopetegui, which has been denied by the club. Trust between the pair is broken. Sources have said they are no longer aligned on strategy and it is hard to see how they can continue to work together.

West Ham will be in an awkward position if talks with Potter break down. A reprieve for Lopetegui could make life awkward for Steidten, whose work in the transfer market is under scrutiny. There is an acknowledgment that Steidten could end up leaving.

The former Bayer Leverkusen sporting manager has been involved in the push for Potter. He was present when Potter met Sullivan on Monday night. The talks ended with the former Swansea manager being asked to take over but he has not given an answer and discussions have continued. There have been suggestions that West Ham could include a break clause in the event of relegation if they give Potter a longer deal.

As well as contract length there have been talks over Potter’s backroom staff. It is likely he would want to bring in his former recruitment chief Kyle Macaulay from Chelsea.

West Ham, who are 14th in the Premier League, seven points above the bottom three, have looked to draw up a contingency plan. They have also spoken to Paulo Fonseca, who was recently sacked by Milan, and Christophe Galtier, who is coaching Al-Duhail in Qatar. However Sullivan has looked past Fonseca and Galtier in the past and tends to prefer managers with experience of English football.