SUNDERLAND, England (AFP) - Sunderland are on the verge of appointing Steve Bruce as their new manager after agreeing a compensation package for the Wigan boss.

Bruce is set to replace Ricky Sbragia, who resigned on the final day of the season after narrowly keeping the club in the Premier League.

Wigan chairman Dave Whelan, who paid Birmingham three million pounds to release Bruce from his St Andrews contract in November 2007, has insisted Sunderland had to come up with a similiar remuneration.

That financial package has now been agreed and Sunderland officials are believed to be in Portugal - where Bruce is on holiday - to thrash out personal details after being given permission to speak to the former Manchester United defender.

Bruce has often been linked with the manager's job at Newcastle but a return to his native north-east with Sunderland would be equally welcome.

But the main attraction must be American businessman Ellis Short's recent takeover at the Stadium of Light.

Short is certain to give Bruce a substantial transfer warchest, which would differ vastly from his tenure at Wigan, where he has been forced to sell his best players and look for bargain buys.

Wilson Palacios was sold to Tottenham and Emile Heskey left for Aston Villa during the January transfer window, ruining Wigan's chances of a Europa League place.

With winger Antonio Valencia attracting attention from Manchester United and several other top clubs, Bruce would have almost certainly lost another star player before next season.

There has also been speculation Bruce has to slash the Wigan wage bill, which could have led to more players being shown the exit.

At Sunderland he will get the chance to build by buying in proven quality rather than having to rely on a scouting system which regularly took him to South America to recruit untested players.