Town chairman David Sheepshanks has announced that the club have agreed a fee with West Bromwich Albion for Thomas Gaardsøe. As reported earlier the board met on Tuesday afternoon to discuss the Baggies' latest offer.
Sheepshanks told the club site that the departure was necessary due to the club having to keep to its CVA commitments: "Having rejected two previous bids we have tonight agreed terms with West Bromwich Albion for the sale of Thomas Gaardsøe.
"West Brom have now been given permission to speak to the player regarding personal terms.
"Thomas has become a popular figure at Portman Road and if he is to leave many will be sad to see him go. Nevertheless, given the realities of life outside the Premiership and in our current position with commitment to our creditors as part of the CVA, after careful consideration together with Joe Royle, it is a bid that we have chosen to accept.
"In terms of team-building, Joe made it his priority this summer to bring in a top new goalkeeper and two new central defenders, one of whom he wanted to be able to play in midfield.
"We have now secured all three players in Kelvin Davis, Drissa Diallo and Georges Santos. However, the reality for us of building a squad capable of gaining promotion is that there will always have to be departures as well as arrivals.
"Everyone I talk to is excited about the new season and hopefully rightly so. Joe has assembled a strong squad but there is no escaping the fact that we still have to further consolidate financially, which is why, for example, that a successful forthcoming share issue is so important in helping to strengthen the capital base of the club."
As part of the CVA the club is committed to bringing in £6.2 million during 2003/04 via player sales, the share issue and the recent debenture scheme.
The document doesn't outline specific figures from each area but it is clear that the fees for Matt Holland (£750,000), Matteo Sereni (undisclosed at Lazio's request, thought to be £200,000 at most) and an extra £250,000 from Birmingham for Jamie Clapham, were not enough to make up the player sales requirement.
Gaardsøe joined Town from Danish club AaB Aalborg in August 2001 for a fee of around £1 million. This rose by £100,000 when he made 20 and 40 appearances and would again on 60. He has played 49 times for the Blues, and has scored seven goals.
Town fans will be annoyed to see another popular player on his way out of Portman Road and also that the fee once again appears to be undisclosed.