Tony Mowbray is set to be unveiled as Celtic's new manager next week after the club agreed to meet West Bromwich Albion's compensation demands.

West Brom chairman Jeremy Peace agreed to let Mowbray begin contract negotiations with Celtic after the Glasgow giants confirmed they would pay £2million for the former Hibernian boss. The Baggies will receive additional payment from Celtic should they also lose coaches Mark Venus and Peter Grant, the former Hoops player.

Peace told West Brom's official website: "We do not want to lose Tony because he has been an integral part of a long-term project at the club which the vast majority of our fans have bought into.

"But Tony expressed his desire to talk to Celtic and now that the compensation figure in his contract has been met to our satisfaction that process can take place. If Tony decides to join Celtic he would leave with our good wishes and we would then immediately put into action the task of appointing a new manager who can take the club forward."

If Tony decides to join Celtic he would leave with our good wishes and we would then immediately put into action the task of appointing a new manager.
West brom chairman Jeremy Peace.

Celtic made Mowbray their preferred candidate to succeed Gordon Strachan, who resigned following the end of the season. Mark McGhee opted to join Aberdeen from Motherwell this week because he was informed the Hoops had made their choice, and he was out of contention to succeed his friend Strachan.

Providing there are no further hitches, and the deal goes through quickly, Mowbray will have a fortnight before pre-season starts and he faces the first of possibly two tricky Champions League qualifiers at the end of July.

Celtic would only confirm that talks with Mowbray are set to begin, with chairman John Reid telling the club's official website: "We can confirm that we have reached an agreement in principle with West Bromwich Albion Football Club and have been given permission to speak to Tony Mowbray and his backroom staff.

"These are complex but important negotiations and we can assure our supporters that we continue to aim to get the right man for the job in the right way."

It is unlikely that any hitches in negotiations will arise and Mowbray should be unveiled before the Scottish media early next week.