Tony Mowbray was set to become the new Celtic manager after the Scottish club agreed a two million pounds ($3.30 million) compensation deal with West Bromwich Albion on Saturday.

Celtic had targeted Mowbray after Gordon Strachan quit as manager in May in the wake of losing out to Glasgow rivals Rangers in the fight for the Scottish Premier League title.

Mowbray, who spent four years at Parkhead as a player in the 1990s, was unable to prevent relegated West Brom finishing bottom of the Premier League in their first season back in the top flight.

He won plaudits, however, for keeping faith with a neat-passing approach having brought the Midlands club up from the Championship (second division) in 2008 after missing out on the playoffs the previous year in his first season in charge.

"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," West Brom chairman Jeremy Pearce told the club's website.

"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."

Assistant manager Mark Venus and first team coach Peter Grant look set to go with Mowbray as the clubs also agreed a compensation deal for them too.