Huddersfield Town and neighbours Leeds United are in “ongoing” talks over coach Steve Thompson.

Elland Road chief Neil Redfearn wants Thompson as his right-hand man.

Town would be willing to let the 50-year-old leave, but only for the right compensation.

That means Thompson could be gone by Saturday’s visit to Bolton Wanderers – where he played alongside Redfearn.

Leeds are at home to Championship leaders Derby.

Town manager Chris Powell said: “There is contact between the clubs and talks are ongoing.

“I’m sure we’ll find out over the next few days whether or not Steve will be leaving.”

Former Blackpool coach Thompson arrived at Town in June as assistant to then-manager Mark Robins.

He became joint first-team coach after the appointment of Powell and his assistant Alex Dyer in September.

Town climbed above Leeds in the table as they went 14th with Saturday’s goalless home draw against Sheffield Wednesday.

Redfearn’s side slipped to 16th after a 2-1 defeat at Blackburn Rovers.