It said the agreement could be signed as early as Thursday. But it added that Peter Davis would not be taking over a general manager but as an external consultant who will also advise the government on the privatisation process.
Davis, a former manager of Air Malta with a long career in DHL, was one of four non-Cypriots to apply for the position of general manager at Cyprus Airways last July, the paper said.
He was proposed to the airline by an intermediary company and is understood to enjoy the support of members of the board and of the finance minister, the press added.
According to the media the fee being discussed is €40,000 a month for three months, renewable monthly if necessary plus ₤30,000 one off payment, a house, car and expenses.
The intermediary company will also receive a fee of €40,000 the newspaper added.