Dennis Wise, the Leeds United manager, will join Newcastle United's coaching staff from after the two clubs agreed a compensation fee. The 41-year-old will depart Elland Road tomorrow after preparing the side for their Coca-Cola League One clash at Southend United.

"We have agreed a compensation package with Newcastle for the services of our manager Dennis Wise and he will part company with the club on Tuesday, after completing the preparations for our game at Southend that evening," said a statement issued by Leeds.

"Newcastle had approached us for permission to speak with Dennis on Friday and since then things have happened very quickly.

"We will always be grateful to Dennis for the way he has turned things around at the club on the playing side and he goes with our best wishes for the future.

"We are not prepared to comment on the inevitable speculation that will now follow about who will replace Dennis. That is not the way we do our business at this club."

Kevin Keegan, the Newcastle manager, declined to comment on speculation that Wise was on his way to the club as he conducted his pre-match press conference for tomorrow night's Barclays Premier League trip to Arsenal.

The 56-year-old, who was hoping to hold further talks with Alan Shearer about his proposed return to St James' Park later today, insisted the speculation was a matter for Chris Mort, the Newcastle chairman. Asked if he could comment on the situation, he said: "Not really, other than to say that's a question for Chris Mort, the chairman, to answer when he comes back. He will be back on Wednesday or Thursday. I am just wanting to concentrate on Arsenal."