Hull vice-chairman Ehab Allam says the club hope to unveil their new before the weekend, with Marco Silva widely tipped to be appointed.
The Premier League’s bottom club parted company with Phelan on Tuesday with Allam insisting the Tigers require a “fresh approach” to stand any chance of avoiding immediate relegation back to the Sky Bet Championship.
Former Olympiakos boss Silva has emerged as the unlikely favourite to replace Phelan, with reports suggesting a deal to bring in the Portuguese 39-year-old has already been finalised.
The decision to dismiss Phelan less than three months after he was appointed to a permanent role has been met with some criticism by supporters, who are likely to make their feelings clear in Saturday’s FA Cup third-round clash with Swansea.
But Allam, whose family are continuing efforts to try to sell the club, said in a statement that the change was inevitable after the Tigers’ promising start to the new campaign began to fade.
Allam wrote: “Mike initially took on the role at a difficult time last summer, inheriting a small squad that had lost a number of players to injury, and with the transfer window already in full swing. He would also go on to lose a number of key backroom team members through no fault of his own.
“Despite the difficult circumstances, the team made a positive start to the season and money was made available to strengthen the squad ahead of the transfer deadline with a significant investment made in the signing of six new players.
“However, results have been on the decline since that time and although there have been some positive performances in recent weeks, we sit bottom of the Premier League and I felt now was the right time to take a fresh approach and give this club and squad of players the best possible chance of retaining Premier League status.
“I expect to have a new management team in place ahead of the weekend.”
Monday’s 3-1 defeat at West Brom was Hull’s ninth consecutive Premier League game without a win and leaves them two points adrift at the foot of the table, but Allam insists they still stand a good survival chance.
He added: “I maintain the belief that the current squad, with two or three key additions during the current transfer window, is good enough to survive in this division.
“I acknowledge that our position in the table will make recruitment more challenging, however all of our efforts are now focussed on enhancing the existing squad with Premier League survival our priority.”