Get the latest Cardiff City news sent straight to your inbox Sign up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

Crystal Palace have dramatically decided not to appoint ex-Cardiff City boss Malky Mackay as their new manager.

Scotsman Mackay, 42, had long been the favourite to take over at Selhurst Park following the dramatic decision of Tony Pulis to leave the club last week by mutual consent.

The presence of Iain Moody at Palace, a man who has worked closely with Mackay at both the Bluebirds and Watford, was thought to be the deciding factor in the eyes of the Premier League club's co-chairman Steve Parish.

Mackay looked to have beaten off rivals Tim Sherwood, Martin Jol and Glenn Hoddle to secure a move back to the Premier League.

But reports on Wednesday evening suggest a deal to appoint Mackay has hit a stumbling block.

Caretaker boss Keith Millen, who took charge of Palace in their 2-1 Premier League defeat to Arsenal on the opening day of the season, is now set to stay in charge for this weekend's game against West Ham.

The news will be a bitter blow to Mackay, who has been looking for a return to management since being sacked by Cardiff City last Christmas.

And any reunion with Moody now looks set to be off the cards as Parish pursues other targets.

Moody moved to Palace after being controversially sacked by Tan – the Malaysian holding him accountable for what he saw as overspending on transfers by the club.

He's still at the club despite reportedly being at the heart of the recent ‘Spygate’ row.

Palace were given a Premier League fine on Monday, one which could be up to £25,000, after being found guilty of breaking rules to obtain the Cardiff team prior to the meeting between the two sides last April. Palace won that game 3-0 at the Cardiff City Stadium.

Moody was accused of using his links with Cardiff to obtain the team – a claim Palace deny.

And now reports suggest Cardiff City are set to launch legal action against Palace in the wake of the scandal.

“The Premier League board has considered a complaint from Cardiff City regarding the conduct of a Crystal Palace official,” said a statement in the wake of Monday's decision.

“The board found that Crystal Palace breached Rule B16 and has exercised its summary jurisdiction and fined the club.”

Rule B16 states: “In all matters and transactions relating to the league each club shall behave towards each other club and the league with the utmost good faith.”

Whether Palace return to former Tottenham boss Sherwood now is yet to be seen but the rather farcical nature of the appointment can't be doing the club any favours with the transfer window narrowing and the season already underway.