Hermann Hreidarsson has agreed terms with Charlton Athletic and will sign with the Addicks this morning after he completes a medical. Charlton confirmed our earlier report late on Wednesday night.

Alan Curbishley's club report the fee as £900,000 and it seems that £500,000 will be up front with more on appearances.

The Icelandic international joined the Blues from Wimbledon two days before the beginning of the 2000/01 season for a fee which rose to £4.5 million when Town kept their Premiership place.

Town chairman David Sheepshanks confirmed yesterday that the fees for Hreidarsson and Darren Ambrose will go towards covering wages for the next few weeks.

The club had budgeted for an administration period of six weeks, however it appears that negotiations with the major creditors - the banks, Inland Revenue and Customs - seem to be taking longer than initially expected.

In the long-term the removal of his £17,000-a-week pay packet will make a significant difference to the club's wage bill. David Sheepshanks said recently the club are looking to reduce the overall bill to £5 million.

Hreidarsson is currently out of action after receiving a gash just above his knee in the home game with Stoke City earlier this month.

Town had agreed a fee with Portsmouth as well as Charlton but with the South Londoners more established in the Premiership it was no surprise that Hreidarsson made the choice he did.

The popular Icelander made 127 appearances for Town and scored three goals.

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