Crystal Palace have made an official approach to Blackpool boss Ian Holloway with a view to appointing him as their new manager.

Reports suggest the Seasiders will permit the move provided that the Eagles are willing to pay them £400,000 in compensation.

Palace have spent the past week considering their options following the departure of Dougie Freedman, who left the club to fill the vacant hotseat at Bolton Wanderers.

Holloway has been assured that the club's star player Wilfried Zaha will not be sold despite attracting interest from a number of Premier League teams, according to the Daily Mail.

The 49-year-old, who guided Blackpool to the Premier League in 2010, is expected to be unveiled as the new Palace manager before Saturday's Championship clash with Blackburn Rovers.