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Roy Hodgson will receive a £1m bonus if he keeps Fulham in the Premier League, according to a report in the Daily Mail.

Fulham chairman Mohamed Al-Fayed reportedly plumped for Hodgson because of his years of experience in European football, with former Fulham midfielder John Collins – who recently resigned from his role managing Hibernian – having come under strong consideration. Although Fulham have not confirmed any contractual details relating to their new manager, the Mail reports that the 60 year-old has agreed a three-year contract at Craven Cottage on around £25,000-a-week.

Hodgson will watch Fulham’s game at Birmingham City from the stands with responsibility for team affairs in the hands of Ray Lewington and Billy McKinlay for the last time. Al-Fayed moved quickly to appoint Hodgson when he learnt that the former Finland manager was about to be confirmed as director of football at one of his former clubs, Inter Milan.

Hodgson, who nearly guided Finland to Euro 2008 in his last job, described his management approach earlier this year as ‘studied, player-orientated and with an emphasis on preparation and tactics. Because you take on leadership responsibilities, inevitably you have to be somewhat authoritarian. The game of football doesn’t lend itself to true democracy.’