The South London Press tonight says Palace have been told he will not be return to his post as first team coach and will instead take the hotseat at the new A-League club.

"I've had a conversation with him last night and they have offered him a five-year deal to go," said Eagles co-chairman Steve Parish. "We're trying to sort out the details."

Popovic publicly became the frontrunner for the post last week when he stopped off in Australia on his way home to the UK from Japan.

He was also heavily linked with the then-vacant head coach job at Sydney FC after the club was rejected by Mariners coach Graham Arnold and Jets boss Gary van Egmond.

The former Sydney FC defender and assistant coach was courted by his old club and met with former Sydney United team-mate, now sky blues goalkeeper coach, Zeljko Kalac.

But he has now apparently rejected the Sydney job - which was then given to youth coach Ian Crook today - to focus on the challenge of a fresh club he will be able to build from the ground up.

West Sydney are initially being funded by the FFA with a view to turning the club over to a community ownership model after two to three years.

A five year deal, as reported in the UK, would be an exceptional contract length for Popovic and the longest in the A-League.

An announcement is expected this week confirming the appointment and on the club's name and colours - tipped to be West Sydney Wanderers, playing in red, black and white.

Former Melbourne Heart assistant Ante Milicic is also expected to be confirmed as Popovic's deputy at the new club.

The choice of name and colours comes after a series of public discussions which culminated in an online poll last week, giving fans a number of options to choose from.