Published: Tuesday, 2nd June, 2009 1:20pm

Fergie off-limits as Rodgers rumours intensify

Home boy: Will Brendan Rodgers be the next Reading manager?

READING may have to scrub highly-rated Darren Ferguson off their managerial wish-list due to Peterborough"s compensation demands.

It has been suggested Posh want at least £1 million for the 37-year-old who led the club to the Championship after back-to-back promotions.

And they will demand a further £1 million pay-out should the Scot, son of Manchester United legend Sir Alex, also guide the Royals back into the Premier League.

Though Reading are set to benefit from their final £11 million parachute payment this season, the cost of acquiring Ferguson may now be too high, given the substantial wages he would also command.

However, Royals director of football Nick Hammond is keeping his options open as he works his way through his shortlist that is also thought to include Watford"s Brendan Rodgers and Swansea"s Roberto Martinez.

Hammond said: 'The interview process is now well underway and that will continue for the next few days.

'Then I"ll meet with the board to narrow down the interviewees into a final shortlist.

'We"ll then speak to those candidates again, and hopefully make an appointment in the next couple of weeks.'

Rodgers, 36, has been one of the hot favourites ever since Steve Coppell quit at the end of last season following Reading"s play-off defeat to Burnley.

The Northern Irishman spent more than a decade working with the Royals in various capacities before becoming Academy manager and he still lives in the town.

His work saw him head-hunted by ex-Chelsea boss Jose Mourinho in 2004 and he enhanced his reputation at Stamford Bridge with the youth team and reserves.

He then switched to Watford in November last year and successfully steered them away from relegation in his first managerial job.

Rodgers has a 12-month rolling contract with the Hornets and Reading would have to pay in the region of £500,000 compensation to land him.

It is believed Rodgers has no particular desire to leave Vicarage Road but he may find the prospect leading the Royals too tempting to turn down.

Martinez is another candidate for the post following the Spaniard"s impressive progress with the Swans.

Exeter"s Paul Tisdale, Alan Curbishley, locally-based Glenn Hoddle, Paul Ince and Aidy Boothroyd have also been linked.

But there is growing support for Preston"s Alan Irvine, though their chairman Derek Shaw will not let him go without a fight.

'Alan is under contract and I don"t want to get sucked into talking about speculation,' insisted Shaw.

What is certain is that whoever is appointed will receive financial backing from chairman Sir John Madejski to rebuild the squad.

Senior pros like Marcus Hahnemann, Graeme Murty, Michael Duberry and Leroy Lita have all been released and next season the club will put more faith in youngsters like James Henry, Julian Kelly, Alex Pearce, Jem Karacan and Simon Church.

And Hammond insisted: 'This is a good football club and the structure is such that when we appoint a manager he has 100% support and the ability to manage in the way he wants. Nothing will change in that respect.'

Meanwhile, Royals striker Noel Hunt is confident of being fit for pre-season training next month as he recovers from a fractured foot.

The Irishman scored 13 goals in 29 starts last season and physio Jon Fearn explained: 'We"re hopeful he will be off his crutches within a week or so.

'He will have a further scan and if all looks good he can come off them. Then we can aim for pre-season.'

Ex-Royals winger Glen Little could join Championship side Coventry City after being released by Portsmouth.