West Bromwich Albion manager Tony MowbrayNick Potts/PA

West Brom have given Celtic permission to discuss personal terms with manager Tony Mowbray after agreeing a £2 million ($3 million) compensation fee for his release.

The former Bhoys defender has been linked with the vacant managerial position at Celtic Park since Gordon Strachan stepped down at the end of May.

The Baggies have held firm over their boss, but having received an offer they deem acceptable have now allowed Celtic to enter negotiations with Mowbray.

“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,” said West Brom chairman Jeremy Peace.

“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.”

The fee settled upon includes the acquisition by Celtic of Mowbray’s assistant at The Hawthorns Mark Venus and first-team coach Peter Grant.

Mowbray established his reputation in a managerial capacity north of the border during a two-and-a-half year spell with Hibernian, from whom he joined The Baggies in October 2006.