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Alan Pardew is set to be Crystal Palace's new manager after a compensation deal was agreed with Newcastle.

The 53-year-old was the Eagles' number one choice to replace Neil Warnock and

, but the move hinged on Palace agreeing compensation for the former West Ham, Charlton and Reading boss.

Magpies owner Mike Ashley has now agreed to a package believed to be worth £2.25million to release Pardew from his contract, which was due to run until 2020.

The Crystal Palace co-owners will now search for a final agreement with Pardew on personal terms before confirming the appointment. His new deal will include a significant bonus for keeping the club up.

Analysis:

(Image: Serena Taylor)

Pardew is expected to be in charge by the New Year, when he will be handed significant sums to strengthen the south London club. Palace currently have a few deals on ice that were well in motion before Warnock's dismissal, and Pardew will be given the option of re-igniting those.

The relegation battlers are desperately in need of a new striker and a left-back.

Live updates from our colleagues at the Chronicle in Newcastle: