Mowbray had told West Brom he wished to talk with Celtic

Celtic hope to finalise the deal to make Tony Mowbray their manager by midweek and insist that his transfer budget remains intact.

The Glasgow club agreed to pay the £2m in compensation demanded by West Brom, but a Celtic source says that will not reduce money available for new players.

West Brom gave Celtic permission to speak to Mowbray on Saturday.

But a deal for assistant Mark Venus and coach Peter Grant appears to be holding up Celtic's official announcement.

Personal terms are unlikely to be a problem for former Celtic defender Mowbray, but West Brom are also seeking compensation for the loss of his backroom team.

Mowbray's former Celtic team-mate, Malky Mackay, believes his football philosophy will endear him to the Scottish Premier League club's support.

Mackay, who himself looks set for a new job this week as Watford manager, said: "I was asked a couple of weeks ago when I was up for Tommy Burns' testimonial day who would be my tip.

"I said then I felt Tony Mowbray's style of football would be embraced by the Celtic supporters and they would take to him even more than the relationship they have got with him at the moment."

Speculation has already begun as to who Mowbray's first signings will be.

West Brom captain Paul Robinson has been quoted as saying he would like to follow Mowbray to Celtic Park, while another left-back, out-of-contract Real Sociedad player Xabi Castillo, is apparently keen on moving to Celtic.

Midfielder Borja Valero and striker Marc-Antoine Fortune, who was on loan from Nancy, have also been linked with a move to Celtic Park from the Hawthorns.

There had been a stand-off for several days between the clubs after West Brom chairman Jeremy Peace indicated he was not prepared to back down on his compensation demand.

"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," he told his club 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 who can take the club forward."

Mowbray had been one of three managers targeted by Celtic, along with Burnley's Owen Coyle and Swansea's Roberto Martinez.

Burnley's compensation demand appears to have been what thwarted Celtic in their desire to talk officially to Coyle.

Celtic then turned their attention to Mowbray after Martinez was approached by Wigan.

Celtic chairman John Reid then confirmed on Saturday his club would be speaking to Mowbray.

"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," he told Celtic's website.

Mowbray played for Celtic between 1991 and 1995, straddled by spells with Middlesbrough and Ipswich, with whom he started his coaching career.

He had a brief spell as caretaker boss at Portman Road after the sacking of present Scotland boss George Burley before becoming a manager in his own right at Hibernian.

Mowbray led the Edinburgh club to two top-four finishes in 2005 and 2006, after which he left for West Brom.

Noway-Pedr

He led the Baggies to the Championship play-offs, losing to Derby, but the following season they won the title and promotion to the Premier League.

However, they only lasted a season in England's top tier and were relegated, despite receiving plaudits for their attacking style of football.

Mowbray's appointment will also result in a return to Celtic Park for Grant, who spent 15 years with the Glasgow club.

Grant, who began his coaching career as assistant boss at West Ham, spent a year as manager of Norwich before joining Mowbray at West Brom in 2008.

Mowbray's pending appointment would be welcomed by Celtic fans, according to Peter Rafferty, secretary of the Association of Celtic Supporters' Clubs.

"He has served a decent apprenticeship in Scotland and England," he stated. "He is obviously aware of Celtic and he will be well received by the fans.

"Peter Grant will be coming with him and nobody is a bigger Celtic man.

"Even at West Brom Tony was committed to playing good football and the fans still supported him - and that says a lot when he got the team relegated."