Pardew admits to mixed feelings about letting Gosling go, but said his proposed move to Crystal Palace was a good one for the midfielder.
He said: "When he was fit, he was behind some fantastic players - Cabaye, Cheick Tiote and now we've obviously got Moussa and Anita.
"With the game time he'd get it wouldn't be fair for me to have him in the squad."
Pardew indicated the move would also help him boost his squad. He told the Evening Chronicle: "We need the room in terms of the finance to get other players in. We wish him well. He's been a terrific lad on the training field here. He was never anything other than 100% committed in his training.
"Like all players, there's a time for them to find their first-team place.
"I think Dan feels at Crystal Palace he's got a great chance of making a career where he's a regular starter."