West Brom are understood to be demanding £2million in compensation for the 45-year-old before allowing him to hold talks with Hoops chiefs.

Chairman Jeremy Peace yesterday confirmed that an official approach had been made for their manager, but warned Celtic they would not be able to prise him away on the cheap.

Hay, manager at Parkhead between 1983-87, now expects the Glasgow giants to dig deep to get their top target.

"If you want him, you've got to pay it I'm afraid," he said.

"In the past, transfer fees were associated with players. But, on the managerial front, that price now has to be paid for expertise.

"To me, it looks as though he will be at Celtic Park.

"With European qualifying games coming up, I'm sure Celtic will want to get a manager in place reasonably soon."

Hay has been impressed by Mowbray's style of play and knowledge of the game but, most of all, he believes he has the right mentality to cope with the Parkhead hotseat.

He said: "You have to be single-minded, strong and knowledgeable about football and I think Tony fits those requirements.

"Everyone is an expert but you are the one who has to be the expert and you have to have belief in your own ability and your judgment calls."

Like Mowbray, Hay was a player at Celtic before returning to the east end of Glasgow as manager.

And, although stressing that a background with the club is not essential, the former Hoops boss believes it is an advantage.

"It helps initially," he said. "It's not a pre-requisite that you have to have that to get the job.

"If you ask Gordon Strachan, he probably felt he knew about Celtic but it's not until you are in the job that you understand the passion of the fans.

"It was the same with Martin O'Neill. But I think the fact that Tony has played there gives him a head start."

Hay also believes a year spent plying his trade in the Barclays Premier League can only help Mowbray cope with the pressures of life with the Old Firm.

He said: "He's got a fair bit of experience, not just in the Premiership but also with Hibs and with West Brom in the Championship.

"But the quality he was up against in the Premiership opens up your knowledge of the game."

Meanwhile, Hay has also backed former player Mark McGhee to be a hit at Aberdeen.

McGhee looks set to be unveiled as the Dons' new manager this week after being told at the weekend he was no longer being considered for the Celtic job.

"He has done well," said Hay.

"He has had highs and lows in football. He did well at Motherwell and I'm sure he will do well at Aberdeen.

"The fact he played there means there is passion involved with Mark because of his association with Aberdeen.

"I'm sure he would have welcomed the opportunity to go to Celtic but I think he will do a good job at Aberdeen."