Neil Warnock
Neil Warnock has returned to Crystal Palace after leaving the club in 2010Getty

Neil Warnock has been named the new Crystal Palace manager after pipping Steve Clarke to the post.

Warnock, who was Palace manager for three years between 2007 and 2010 before he left the club to take over Queens Park Rangers, has signed a two-year deal at the south London side and will be in the dug out on Saturday when Palace face Newcastle at St James' Park.

Club sponsor Neteller announced the 65-year-old as manager after previous front-runner for the job Malkay Mackay dropped out of the race following the furore surrounding inappropriate text messages he sent.

The former Cardiff City manager held talks with Palace about taking over from Tony Pullis but was turned down after it emerged he had sent alleged racist, sexist and homophobic text messages.

A statement on Crystal Palace's official website said:

"Crystal Palace are delighted to announce that Neil Warnock has been appointed as their new first team manager with immediate effect.

"Neil has agreed a two-year deal and will lead the team this Saturday in our Premier League game at Newcastle United."

Warnock's last spell in charge saw Palace in financial dire straits. They entered administation during the 2008-9 season and were subsequently deducted 10 points for the following year.

Stints at QPR and Leeds United ended acrimoniously after he led both clubs towards the foot of the Premier League and Championship respectively.

Other names linked with the job had been Mackay, Clarke and former Tottenham Hotspurs manager Tim Sherwood, but betting was today suspended on Warnock taking charge.

He comes in after Palace were buoyed by a comprehensive 3-0 victory over Walsall in the first round of the League Cup.

A Dwight Gayle hat-trick ensured the Eagles' name would be in the hat for the next round of the cup.