The former Manchester United manager is the Basque club’s top target to replace Jagoba Arrasate, who was sacked at the weekend

Real Sociedad have held talks with David Moyes over their vacant coaching position, although hope of a swift appointment has receded due to the former Everton and Manchester United manager’s wage demands.

The Basque outfit sacked coach Jagoba Arrasate on Sunday after their defeat at home to Malaga saw them drop to 19th place in La Liga.

Goal has learned Moyes is the club’s top target thanks largely to his work at Everton, where he worked wonders with a low budget and brought through a number of youth-team players in his 11-year tenure.

Initial talks were positive but the deal has now hit a stumbling block with the Basque side struggling to put together a suitable financial package.

Real are thought to have offered around €1m per year to the Scot, who is keen to rebuild his career abroad after his spell at Old Trafford came to a disappointing end last April.

“He is the club’s top target,” a source told Goal. “The board believes his style fits with the club’s current squad and they were very impressed with what he did at Everton. Talks have gone well, but they are still some way off an agreement financially. La Real could stretch to €1.5m per year, but are unlikely to pay more than that.”

Former Betis and West Bromwich Albion boss Pepe Mel is also in the frame for the job, along with German Thomas Tuchel (previously with Mainz), while ex-Argentina coach Alejandro Sabella has expressed an interest through his representatives.