Guus Hiddink has reportedly agreed to take over as manager of wealthy Russian club Anzhi Makhachkala.

The Dutchman, who was being touted as a possible replacement for under-fire Chelsea boss Andre Villas-Boas, has been in talks with Anzhi since December.

His insistence that the Russians build a youth academy was a sticking point in negotiations but with the club ceding to his requests he is now poised to sign an 18-month deal.

The 65-year-old, who has been out of football since failing to guide Turkey to the Euro 2012 finals, is set to earn £8.3m per year during his tenure at the Russian Premier League club.

Hiddink enjoyed a successful spell in charge of the Russian national side and his appointment will deliver another blow to former England boss Fabio Capello, who was also thought to be in the running for the job.