The DfES intervened to send in advisers late last year when the council's children's services were ranked bottom of all local authorities in the Annual Performance Assessment.
A city council spokesman said the name of the successful bid for the three-year contract would be revealed in March. He said there was 'ongoing dialogue' with DfES advisers involved in the tender process.
Debbie Jones was named as the interim director of children's services on 1 January, replacing Nigel Rigby who had been on long-term sick leave.
Meanwhile, six private nurseries in the city were up for sale before Christmas.
Brian Cooper, who owns Meir Park Day Nursery, told Nursery World that many providers were 'struggling', with both funded and private settings closing in the past few weeks and evidence of nurseries making staff redundant and cutting their hours.
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