Is Justin Edinburgh worth £100k? - that's the question now facing Gills chairman Paul Scally.

Newport County are reportedly sticking to their guns and demanding the full compensation fee stipulated in Edinburgh's contract.

Gills' initial offer failed to get near the required amount and discussions will resume after a lull in negotiations on Wednesday.

Reports suggesting a deadline for any deal seem wide of the mark as Edinburgh can talk at any time once a fee has been agreed. County director Howard Greenhaf was unavailable on Wednesday, due to personal commitments, and he is the man negotiating with the Gills.

Mr Scally is keen to name a new manager after a month-long search following the sacking of Peter Taylor.

League 2 Newport have lost their last three games and that form has partly been put down to the ongoing speculation, by Edinburgh.

They too will be keen to end the saga but their manager remains contracted until the end of next season. If a deal isn't agreed soon their own promotion hopes could continue to suffer.

Gillingham are understood to have made big money in recent days following the deal involving their former player Ryan Bertrand. That would give them the resources to pay what Newport are asking and the Welsh side know it.

Mr Scally has come out on top previously during manager negotiations, having taken Andy Hessenthaler from Dover and Mark Stimson from Stevenage. He won't, however, be keen on a long drawn out battle with the South Wales side for Edinburgh.

The Gills are unbeaten in four games under their four-man caretaker management team and Mr Scally could easily stick with that group for the rest of the season.

He had already been turned down by AFC Wimbledon boss Neal Ardley while another League 2 manager was also understood to be on the club's hit list. Whatever he decides, it is likely to be done soon.