Since joining West Ham back in October 2003, Pardew has endured rather a rough ride of things, losing out to Palace in the Play-off final last year before overcoming Preston to lead the Hammers back into the Premiership.
This season though, has seen Alan and the team reach another level and they now sit comfortably in the top half of the Premiership table.
A statement from club Chairman Terence Brown on the official site confirms that Pardew will officially sign the contract after the Hammers return from the weekend’s game against European Champions Liverpool.
Brown say’s “I am delighted that Alan Pardew has committed his future to this Club. He is one of the brightest young managers in the game and we are proud to have him at Upton Park.
”I have already paid tribute to the leadership qualities that brought West Ham United promotion to the Premier League but he has achieved much more than that over the last two years.
”Alan has shown himself to be a shrewd judge in the transfer market and I have been particularly impressed by the way he balances the success on the field against the business demands of this Club. It has enabled us to put West Ham United in a strong financial position and build on last season's successes rather than simply stabilise.