Rafferty's Tavern manager and part-owner Mark McIlroy said there was an in-principle agreement and the handover was now in the hands of lawyers.

He said he hoped the sale would be finalised late next week.

"But, I have been saying that for a few weeks," he said.

"The lawyers are going through the contract clause by clause and the new owners will be the Cook Beaumont Group."

That group now has interests in 21 venues, including Rafferty's Tavern and other hotels in Ballarat and Geelong.

"It's not the same makeup as Rafferty's but similar. We are going into the Flying Horse because it's a good pub," Mr McIlroy said.

"We have plans for a few improvements, a tidy up and renovations to toilets and facilities, but those plans are at the drawing board stage.

"We want to open it up a bit but there won't be a nightclub. I've heard that talk and it's not right.

"There won't be anything more than an acoustic duo.

"The Flying Horse has been an awesomely run pub under the management of Monkey (Matthew Monk).

"To go from a greenfield site, to be established as one of the better pubs in Warrnambool has been an outstanding achievement - that was brilliant and Monkey should be congratulated."

Mr McIlroy said the transfer of gaming machine licences would be a drawn out process and the final sign off could take between three and four months.

He said he expected the sale to be finalised towards the end of May or into June.

"It would take a miracle for the sale to not proceed. All parties have agreed in principle but we all just want to be cautious," he said.

"All parties are happy."

Mr McIlroy declined to disclose the sale price, although the property was listed for sale at $6 million.

Mr Monk was contacted for comment.

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