Crystal Palace have offered Roy Hodgson a one-year contract extension that would keep him at the club until 2020.

The 71-year-old signed a two-year deal when replacing Frank De Boer at Selhurst Park last September with the club at the bottom of the Premier League after losing their first four matches. Hodgson led them to an 11th-place finish.

The former England manager is understood to be relaxed about his contract despite having only 12 months left on his present deal, but Palace are eager to promote greater stability having had four managers in the past three years. Hodgson is set to receive an increase on his £2.5 million salary.

Palace need to raise transfer funds through player sales this summer — Newcastle have shown an interest in re-signing Townsend, right GLYN KIRK/AFP/GETTY IMAGES

Hodgson faces a difficult summer in the transfer market having been told there is little money