SAM ALLARDYCE has finally been confirmed as the new manager of England after an agreement was reached with the Football Association over compensation for Sunderland.

The Black Cats are understood to be receiving £3m from the FA - the figure being sought by the Premier League outfit - and confirmation that the 61-year-old is to succeed Roy Hodgson has arrived.

Allardyce was offered the job earlier this week when it emerged the FA had decided he was the man they wanted after talking to Steve Bruce, Jurgen Klinsmann and Eddie Howe.

And Allardyce is delighted after signing a two-year deal. He said: "I am extremely honoured to be appointed England manager especially as it is no secret that this is the role I have always wanted. For me, it is absolutely the best job in English football.

"I will do everything I can to help England do well and give our nation the success our fans deserve. Above all, we have to make the people and the whole country proud.

"While my main focus will be on the senior team and getting positive results, I want to add my influence to the great work being done across the development teams at St. George’s Park – a facility I have used with my previous clubs. I know we have talented, committed players and it is time for us to deliver."

The Sunderland boss was the man they spoke to first at the start of last week when he flew back from the club's pre-season trip to Austria for a formal interview with the FA's chieg vice-chairman David Gill, chief executive Martin Glenn and technical director Dan Ashworth.

It was those three who had the task of appointing the new manager and, after assessing the credentials of the candidature, they have decided Allardyce is best placed to take on the task of leading England to the next World Cup.

Allardyce only had a year remaining on his Sunderland £2m-a-year contract, but the Wearside club were determined to receive a decent sum of money in compensation given the disruption it has caused to their plans for the new season.

Now Sunderland hope to appoint former Everton and Manchester United manager David Moyes swiftly and talks have already taken place with the Scot. Hull City are also likely to consider Moyes, following news that Steve Bruce has decided to leave the KC Stadium.

A Sunderland statemement read: "Sunderland AFC confirms the departure of Sam Allardyce, who takes up the position of England manager with immediate effect.

"The focus of everyone at Sunderland AFC now is on moving forward quickly and decisively, with the appointment of the club’s new manager to be confirmed at the earliest opportunity."

Allardyce's final game in charge of Sunderland was at Hartlepool United on Wednesday night.

The former Bolton boss walked out just after half-time with his side leading 3-0 to avoid the media attention after word spread about his imminent departure.