Roman Abramovich will hold a meeting this week with Eugene Tenenbaum, Peter Kenyon and Bruce Buck as they continue the painstaking process of searching for a new manager. Chelsea have finalised a three-man shortlist of individuals they believe would be capable of doing the most demanding job in European club football – understood to include Luiz Felipe Scolari and Mark Hughes – and are confident of making progress in the next few days. Scolari is the favourite and has told friends that he would relish the opportunity of working for Abramovich.

Chelsea are prepared to bide their time to get the right man, which they may have to so because Scolari will not enter negotiations until Portugal are knocked out of the European Championship finals, rather than settle for one of their less favoured candidates, such as Roberto Mancini or Frank Rijkaard, who are out of work. In an attempt to secure greater privacy, the latest talks will take place on one of Abramovich’s yachts at an undisclosed location, rather than at Stamford Bridge.

Yesterday Chelsea denied claims from Adriano Galliani, the AC Milan vice-president, that they had asked for permission to speak to Carlo Ancelotti, the Italian club’s manager, although they were less forthcoming on the subject of whether he features in their plans. The former Milan midfield player has an enviable record after eight years in charge, lifting the European Cup twice and winning one Italian league title, but his star is fading after the club failed to qualify for next season’s Champions League and his reputation for defensive football is unlikely to impress Abramovich, the Chelsea owner.

Galliani’s claims may be part of an attempt to usher Ancelotti towards the exit because Milan are reluctant to sack their managers, particularly one with such a distinguished record in almost two decades at the club.

Scolari remains in pole position for the job and he would relish one final pay-day; he is the only man who fulfils all of Chelsea’s demanding criteria. The 59-year-old’s record at the highest level is beyond reproach, winning the World Cup with Brazil and twice taking Portugal to the last four of leading championships, while he also coaches attacking football and is a strong disciplinarian, which Chelsea are seeking as they want to reestablish order over the dressing-room.

Guus Hiddink has many similar qualities, although there are doubts over his availability because of his commitment to Russia and the Dutchman ruled himself out in unequivocal terms yesterday. “I have just given my word to the Russian football president and he to me that we will continue until the end of the 2010 World Cup,” he said. “Everyone is speculating because a deal [with the Russian FA] is not signed officially, but what is more important to me is that there is an agreement between the president and me for me to continue.

“I have not spoken to Chelsea regarding the vacant job, but every now and then I have contact with Abramovich about the development of Russian football. That is my only contact. If Chelsea did not put so much pressure to get two or three cups every year, I would imagine they would start to play even better. I know Rijkaard very well and believe he could fit very well in this philosophy.”

As well as finding a new manager, Chelsea will attempt to secure Frank Lampard’s future this week, with his agent expected at the club for contract talks. The England midfield player has one year left on his present deal and is a long-term target for José Mourinho, who will be presented as the new manager of Inter Milan tomorrow.