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Michael Appleton has walked away from talks to become the new Hibs boss - according to a report.

The 43-year-old was frontrunner to replace Neil Lennon at Easter Road but negotiations stalled earlier on Tuesday.

And now, the Scottish Sun claim Appleton is no longer in the running after failing to agree terms on a severance package among other details.

It's reported Appleton was offered a four-month pay-off if Hibs fired him, well short of the standard 12-month arrangement.

(Image: AFP) (Image: SNS Group)

And he was left further shocked as Hibs were not willing to give him an accommodation allowance to move to Edinburgh.

Record Sport revealed on Tuesday that talks with Paul Heckingbottom, also a leading candidate, had encountered issues.

Easter Road chief executive Leeann Dempster was still talking to potential managers over the weekend with others in the frame including Alan Stubbs’s ex-Hibs no.2 John Doolan and Bristol City assistant Dean Holden.

(Image: Manchester Evening News)

The club have ruled out a return for Stubbs while former Australia boss Graeme Arnold was another option Dempster opted against pursuing

Hibs are maintaining they will not rush in to a decision but had expected to have the position filled by now.

They hope to have the new man on board ahead of this weekend’s Premiership clash with Hamilton with caretaker boss Eddie May admitting after last weekend’s Scottish Cup win against Raith Rovers he expected to stand aside in the early part of this week.