Dominic Fifield

Crystal Palace have held talks with Alan Pardew over a new contract at Selhurst Park that will reflect the progress instigated by the manager since he took charge a little under a year ago.

Pardew will oversee his side at Bournemouth on Boxing Day having led Palace to sixth in the table, accruing 60 points from 35 league matches since his move from Newcastle at the start of the year. The 54-year-old, a former Palace player, has two and a half years remaining on his heavily incentivised contract, which includes a release clause set at around £4m. Palace’s desire to tie him down reflects the part they envisage Pardew playing in the club’s development.

The American investors Joshua Harris and David Blitzer each secured 18% stakes in Palace last week after prolonged negotiations with the co-chairman Steve Parish with the intention to plough an initial £50m into revamping Selhurst Park.

Money has already been spent on the club’s Beckenham training ground while key first-team players such as Scott Dann, James McArthur, Jason Puncheon and Yannick Bolasie have been secured to long-term deals since May. Furthermore, a club record transfer outlay of up to £12.5m was sanctioned over the summer to sign Yohan Cabaye from Paris Saint-Germain.

The impact made by Pardew, who has been touted as a possible successor to Roy Hodgson if the England manager’s contract is not renewed after Euro 2016, has been key to Palace’s success. He took over a team languishing in the relegation zone in January and led them to a 10th-place finish, their joint second highest in the top flight.

They have won at Chelsea and Liverpool this season and are outside the Champions League qualification places only on goal difference. Pardew’s current deal is understood to be worth £1.5m a year, plus bonuses linked to retaining Premier League status.