Crystal Palace set to give Sam Allardyce another chance: Arsenal could be his first game

Sam Allardyce is set to be given another chance at Crystal Palace

Palace chairman Steve Parish has turned to the former England manager after axing Pardew just two weeks short of his second anniversary in charge at Selhurst Park.

Starsport understands Parish and the club's American co-owners Joshua Harris and David Blitzer have already held talks with Allardyce and will confirm him asPardew's replacement after Christmas on a contract worth around ￡1.5m-a-year.

But he could stand to cash in even more with a lucrative bonus for keeping Palace in the top flight.

Pardew paid the price for a woeful run of form that has seen Palace lose eight of their last 10 league games to slump to within a point of the relegation zone.

But he will walk away with around ￡5m in compensation after signing a new long-term contract at the end of last season following the club's run to the FA Cup final, where they lost to Manchester United.

After weeks of uncertainty and having seemingly earned himself some breathing space with a recent 3-0 win over Southampton, the club's owners decided to take drastic action yesterday.

Parish said: "I would like to put on record our sincere gratitude for the tremendous service Alan has given us, both in his time here as manager and previously as a player.

"During his tenure Alan's hard work and dedication were without question, he has improved so many areas of the club and we wish him the very best for the future.

"With games now coming thick and fast over the holiday period the cub are hoping to put someone in place as quickly as possible, but have nothing to say about a replacement at this time."

Pardew said: "I would like to thank everyone for their support, in particular the players who gave me everything. I feel I had a special bond with the club."

Allardyce is not expected to be in charge for the Boxing Day clash with Watford, but Starsport understands he is likely to lead the team for the first time at Arsenal on New Year's Day.

Allardyce was forced to resign in disgrace as England boss in September after just 67 days in charge.