West Ham United have appointed Alan Curbishley as their new manager, replacing Alan Pardew, who was sacked on Monday.

The former Charlton Athletic manager was the favourite to take up the position after he held talks with Eggert Magnússon.

"If you'd said to me when I was at West Ham at the age of 16 that one day I'd be manager I would have thought it impossible," Curbishley said. "I'm looking forward to the challenge and I'm deeply delighted to be here."

Curbishley and his assistant Mervyn Day, the former Hammers' goalkeeper, will take charge for West Ham's home game with Manchester United on Sunday.

"I am delighted that Alan has agreed to join," said Magnússon. "He's a manager with a proven track record and a real love for this club."

"This a great day for West Ham. I'm sure we have the right management team to take the club forward. On behalf of everyone at West Ham, I welcome Alan and Mervyn - two of our former players, who are now back where they belong."

Initial contact between intermediaries of Curbishley and Magnússon was believed to have been made on Monday night, within hours of Pardew’s dismissal. West Ham confirmed that formal discussions had taken place yesterday — Phil Smith, Curbishley’s agent, flew back from Spain to advise him — and that they were extremely positive.

Key to the negotiations was Curbishley’s desire for a long-term contract — at least 2½ years — and the freedom to pick his backroom staff. Keith Peacock, his former assistant at Charlton, is already at Upton Park in the same capacity and is likely to remain.

For Curbishley, the timing is perfect. The sabbatical that he had taken since he left Charlton at the end of last season has served its purpose — the recharging of long worn-down batteries — and the challenge of reviving a club that he played for from 1975 to 1979, making 85 appearances, greatly appeals to him.

The timing for Magnússon is perfect, too. A swift appointment would not only quell the rising discontent from the West Ham fans, who have voiced almost unanimous disapproval of Pardew’s sudden exit, but also regain some credibility for the new Icelandic regime.

Magnússon had pledged his wholehearted support for Pardew only last week, soon after he and Björgólfur Gud-mundsson, his main financial backer, had completed the £85 million takeover of the club. Yet after the 4-0 defeat away to Bolton Wanderers on Saturday, Magnússon performed the most abrupt of about-turns.

Pardew, with a £1 million compensation package to console him, is likely to take a break from football. Rumours persist, though, that he could be tempted back quickly should the Charlton board feel the need for an experienced hand alongside Les Reed, who took over from Iain Dowie one month ago. Charlton’s predicament is as perilous as that of West Ham.

Curbishley’s immediate job will be to instil confidence in a squad desperately bereft of self-belief. The players held their Christmas party last night — they decided against cancelling it, which they had considered doing out of respect to Pardew — and it could be construed as a first session of team-bonding in the new era.

However, it will take more than a social get-together over mince pies and Christmas crackers to save West Ham’s top-flight status.

Curbishley may also have the additional problem of “baggage” carried over from his time at Charlton.

Paul Konchesky, the West Ham left back, did not have the most cordial of relationships with Curbishley before his move to Upton Park in July last year. Nor was Curbishley overly impressed by the attitude of Carlton Cole, the West Ham striker, who played on loan at Charlton from Chelsea three years ago.