"Crystal Palace have offered compensation at a level whereby Alan has now been permitted to speak to them," the statement said of the manager who joined the club in December 2010.

"As a result of this development today, Alan will not be at training on Tuesday. Training will be the responsibility of assistant manager John Carver."

The agreement smoothes the way for Pardew's managerial 'transfer' to the club where he was once a favourite as a player.

With Pardew's Newcastle contract still having six years to run, a compensation package will need to be finalised between Palace's co-owners and United owner Mike Ashley, who is currently on holiday in Barbados.

If the deal is confirmed, it would mean Pardew leaving a club currently lying 10th in the table for one struggling for survival in the relegation zone in 18th place, having sacked their manager Neil Warnock on Saturday.

Yet after a turbulent time at St James' Park, where he faced various campaigns calling for his resignation or dismissal, the 53-year-old Pardew would be warmly received back at Palace, the club he helped steer to an FA Cup final as a midfielder in 1990.

Reports in the British media claim that Pardew, whose future looked particularly insecure before Newcastle rallied from their dismal start to the season, had made it clear to Ashley he wanted to go to Palace.

He played for the London club as a midfielder for four years, making 128 league appearances and scoring eight goals.

Pardew's most celebrated goal, though, was the one that sank Liverpool in the 1990 FA Cup semi-final. Palace went on to lose the final to Manchester United after a replay but it remains the Eagles' finest achievement.

Speculation about Pardew's future had been rife since he skipped the post-match news conference after Newcastle had beaten Everton 3-2 on Sunday.

There have also been reports that Pardew, whose family home is in Surrey, much nearer to London than Newcastle, was left frustrated by a meeting with Ashley last month where he was told he would have no money for new signings in the transfer window.

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