And the incoming manager has permission to top it up with whatever cash he can raise through summer sales.
Despite Norwich’s desperate attempts to reject their manager’s resignation, Lambo is expected to be confirmed as Villa’s manager by the weekend — as SunSport exclusively revealed yesterday.
Randy Lerner, Villa’s American owner, and chief executive Paul Faulkner met Lambert and agent Athole Still in the Midlands last night.
Lerner spelled out the need for Lambert to shake Villa out of last season’s lethargy and funds will be available to make any changes he feels necessary.
However, there will be no return to the mega spending of Martin O’Neill’s early days at Villa Park.
Villa finished perilously close to disaster last season, just two points clear of the relegation zone with a patched-up squad.
Last night’s meeting left Lambert in no doubt he will be backed to hire and fire whoever he wants — regardless of reputation — to restore Villa’s standing.
Lerner was stung by accusations he had lost his passion for the club last season as Villa limped along under Alex McLeish.
Saddled with debts of £54m from the previous season, McLeish was handed less than half of the £36m raised by the sales of Ashley Young and Stewart Downing.
McLeish’s biggest buy, £9.5m winger Charles N’Zogbia, flopped and will be one of those in jeopardy under Lambert.
Big Eck, recruited from Birmingham last summer, was sacked after just one season in charge.
Lambert will have more scope to rebuild, with the departures of big earners Emile Heskey, Carlos Cuellar and Brad Guzan this summer easing Villa’s payload for the third straight summer. Now Lambert will be given the green light to justify the club’s decision not to appoint a director of football.
Norwich last night maintained they had not accepted Lambert’s resignation. SunSport understands there is a clause in his contract allowing him to speak to Premier League clubs.
The Canaries are now unlikely to collect anywhere near the compensation Liverpool paid Swansea for new man Brendan Rodgers.
Although the clubs will battle over a fee, Norwich will do well to receive £1million, as Lambo was only on a one-year rolling deal.
Lerner wants Lambert to revive Villa in the same way he guided Norwich to two promotions and 12th place back in the top flight.