Crystal Palace and Newcastle United have agreed compensation terms over Alan Pardew's move south.

The Daily Mail says Pardew will sign a four-year contract, worth in the region of £2million-per-season, after agreeing to return to the club he joined as a player in 1987.

The two clubs settled on a fee to free Pardew from his Newcastle contract, which still had six years left to run. The original release figure was set at £5million, but with Palace unwilling to the meet that price, a lower fee was agreed.

A figure of £2m has been quoted, but Newcastle insist the fee was higher. Pardew had made it clear to Newcastle owner Mike Ashley, who is in Barbados, that he wanted to return to Palace and the Toon chief agreed to compromise.