Phil Parkinson’s new City contract should be based around the division they are in, according to John Hendrie.

The former Bantams winger believes Parkinson will take up their offer to remain at Valley Parade.

Parkinson continues to be linked with the vacancy at his old club Reading, who are thought to be interested in talking to him. But City keep stressing that no approach has been made.

He is currently mulling over City’s contract offer with the League Managers’ Association, who have got involved with the talks because his agent fell seriously ill.

Parkinson is rumoured to be one of the lowest-paid managers in League Two. Hendrie, who acts as an advisor with player deals, believes an improved contract does not have to mean the club taking a financial risk.

“Contracts can be done where it’s structured depending on what division you’re in,” said Hendrie.

“So say, for instance, with a three-year deal, the first would be based on League Two, the second on Two or One and the third One or above. You’d be rewarded for the division you’re in, whether it’s the Championship down to League Two.

“You’ve got to pay accordingly to what league you are in.

“Bradford have had two administrations to their name and the last thing they need is unrealistic contracts, whether it’s with players or managers.

“Too many contracts are structured to higher divisions and that’s why clubs are hitting the wall. Some of these deals can be a noose round your neck.

“The fairest way is that you’re paid for how well you’ve done at that level. There’s no reasons why you can’t do contracts like that.

“You’ve got to look at the bigger picture for the benefit of the club and the individual, whether it’s the manager or a player. You can always introduce bonuses for good cup runs or doing well in the league.

“Phil has done well and I’m sure City want to keep him. Getting to Wembley was an absolutely magnificent achievement but they are still a League Two club at this moment in time.”