Bruce Levine of ESPN Chicago reports Thursday morning that an agreement is expected to be reached for compensation for Theo Epstein:

The Chicago Cubs and Boston Red Sox are expected to have an agreement on compensation that would make Theo Epstein the Cubs’ president of baseball operations at some point Thursday morning, according to a Major League Baseball source.

A source with knowledge of negotiations said: “The two sides are on the 5-yard line.”

A news conference is expected on Friday.

A tweet from David Kaplan has more possible details:

Compensation will not include ML talent but will include value but not Brett Jackson. If it’s Trey McNutt, oh well. Price of doing biz!

The ESPN Chicago report also indicates that Epstein would be given the title President of Baseball Operations, and that the Cubs would eventually hire San Diego Padres general manager Jed Hoyer to work under Epstein, as he did in Boston. However:

a source told ESPNBoston.com’s Gordon Edes late Wednesday night that the Cubs have not asked for official permission to interview Hoyer.

The ESPN Chicago report was updated to indicate that no compensation would be due to the Padres for Hoyer. As always, we await further developments.