Falkirk have allowed Steven Pressley to hold talks with Coventry City over their vacant managerial position.
The former Sky Blues player, who has been in charge of the Bairns since 2010, emerged as the favourite for the job overnight.
League One side Coventry are seeking a new manager since Mark Robins' departure for Huddersfield Town in mid-February.
Falkirk chairman Martin Ritchie told STV: "We have an agreement with Steven that, should a club come calling, then we wouldn't stand in his way if he felt it was a career progression.
"There has been no offer from Coventry to release Steven from his current contract, so he is still contracted to us.
"At the moment, I'd expect him to be in the dugout for this weekend's match [at Greenock Morton]. But you can never tell.
"Steven has been attracting interest from clubs over the last 12 months. So it doesn't surprise me another club is interested in our manager."
Pressley recently guided Falkirk to the Scottish Cup semi-final, where they will face Hibernian. His side currently sit fifth in the First Division table.
The 39-year-old ended his playing career at the club, before taking up a role as assistant boss. He stepped into the manager's job following the departure of Eddie May in February 2010.
Capped 32 times by Scotland, Pressley had spells with Rangers, Coventry City, Dundee United, Hearts, Celtic and Randers prior to his final appearances with Falkirk.