But it seems the BFA are not going to let the 33-year-old Englishman go without a fight.
In a statement the BFA said Hudson, who signed a two-year deal with the BFA in February this year, had written a letter requesting an “amendment” to his current contract after being offered the All Whites job.
The BFA said they will hold a meeting with Hudson following the Eid Al Fitr holiday, but that they were confident he would be in charge of the national team in the Gulf Cup in Riyadh in November and the Asian Cup in Australia in January.
NZF chief executive Andy Martin has previously said the new All Whites coach would be in place by September’s away game against Uzbekistan.
The search for Ricki Herbert’s replacement has been a long one. Herbert quit in November following a disappointing World Cup qualifying campaign.
Australians Frank Farina and Gary van Egmond were also believed to have made the NZF short-list.
Hudson, the son of former England international Alan Hudson, has enjoyed success in Bahrain, firstly with the under-23 side. He was given the senior job in August last year.
The former Newport County boss is seen as one of the brightest coaches around after becoming the youngest coach to take the FIFA Pro Licence.
He has spent time with and learning from leading managers including Argentina’s Marcelo Bielsa, at Athletic Bilbao, and Jose Mourinho at Real Madrid.