As part of his separation agreement, 21st Century Fox will pay for Roger Ailes' legal counsel and any damages in the lawsuit brought against him be former Fox News Anchor Gretchen Carlson.

This means that Ailes is covered if there is settlement, or if he loses the case it court.

Sources tell FTVLive that 21st Century Fox and Ailes have hammered out the separation agreement which will continue to pay him over $6 million a year plus bonuses until the end of his current contract.

The proposed agreement will let Ailes continue to "consult" Fox News and be paid.

We have been told that both sides are quote "sleeping on it" and it is expected that Ailes will be out as CEO of Fox News by the end of the week.

Insiders tell FTVLive that the Fox News building is like a funeral, people are all talking in hushed tones "even about regular news stuff."