Tottenham boss Harry Redknapp will cost the Football Association a staggering £10 million in compensation payments to release him from his current £3m-a-year deal to take up the England job, according to a report from The Times.

It is understood that the FA could become embroiled in a financial and legal fight for Redknapp's services if they are intent on the 65-year-old becoming the next Three Lions coach.

The newspaper claims that there are a series of clauses that would force the FA into paying a substantial amount of compensation for the man who they are confident can lead them to success at Euro 2012.

A source said that the clauses would be "unenforcable", if tested in an industrial tribunal, but Spurs chairman Daniel Levy is unlikely to agree, being widely regarded as one of the most stubborn negotiators in football.

During his trial for tax evasion last month (of which he was found not guilty), Redknapp confessed to not reading his contract before signing it, and the various clauses in his current Spurs deal indicate that negotiations could be drawn out if or when the FA makes its move.

The FA is expected to ramp up its search for Fabio Capello's successor next week as they officially approach as many as three managers in the hope of finding a solution before the end of the current season.

Redknapp is the clear favourite, but the FA are believed to be looking also at Roy Hodgson and Martin O'Neill as insurance options in the event of complicated negotiations with the former Portsmouth boss.

Hodgson is said to be unwilling to enter into talks whilst Redknapp remains the fans' and boardroom's choice alike and is reportedly in talks to sign a new deal with West Brom anyway.

Sunderland manager O'Neill was rumoured to be the first choice of director of football development Trevor Brooking, who is also one of four members on the FA's selection panel.

As well as the issue of compensation, there will need to be discussions over backroom staff, pay and long-term visions for the England team.

The FA is banking on Spurs' recent poor form to reduce the overall compensation package price due to Levy, who himself forked out around £5m to secure Redknapp's signature from Portsmouth four years ago.

Tottenham may be unwilling to negotiate while their qualification for next season's Champions League remains up in the air, and other clubs may also insist on waiting until the season has finished before entering any discussions.

The eventual replacement for Capello will need to name a squad for Euro 2012 on May 15 before jetting out to a training camp in Spain just five days later.

There are then two friendlies away to Norway on May 26 and at home to Belgium on June 2 before England's opening group game against France on June 11.