Wolves have parted company with Julen Lopetegui after a breakdown in the relationship between club and manager, with Gary O’Neil poised to replace him days before the start of the season. Lopetegui had been due to take training on Tuesday evening but spent the afternoon in discussions with the club’s hierarchy over terminating his contract. He signed a three-year deal last November but a financial settlement has now been agreed. In a statement, the Wolves sporting director, Matt Hobbs, said Lopetegui has left the squad in “great shape which will give his successor the best possible chance of success”. He added: “While our ambition had been to move into the new season together, it is public knowledge that there were differences of opinion on some key topics, and it was agreed by all parties that it would be best to part ways ahead of the new campaign.” Lopetegui said: “I wish Wolves and everybody at the club the very best of luck for the future, and thank them for the opportunity granted at the time to take charge of this wonderful club.” The outgoing manager had repeatedly voiced unhappiness at a lack of investment this summer amid financial fair play constraints and Wolves were concerned his frustrations could damage dressing-room morale. Wolves twice previously attempted to hire Lopetegui and considered his appointment a coup but both parties agreed it was best to part ways after tensions escalated. Wolves felt compelled to sound out possible successors and last week held productive talks with O’Neil, their No 1 target to succeed Lopetegui. O’Neil was sacked by Bournemouth in June despite retaining the club’s Premier League status after replacing Scott Parker, who left after a 9-0 defeat at Liverpool. O’Neil is understood to be abroad but is primed to take over and is expected to be in the dugout when Wolves begin their season at Manchester United on Monday. Lopetegui brought in seven staff last year, including his son, Daniel, a performance analyst, who works closely with Hobbs. They have also departed. Wolves have made only one outfield signing this summer: the full-back Matt Doherty, who returned on a free transfer. Last week the Wolves chairman, Jeff Shi, sent an open letter to supporters in which he blamed “a significantly increasing wage bill and player acquisition costs” for their financial predicament.