Magnusson, currently head of the Iceland FA and a UEFA executive committee member, also revealed Tuesday that he would be exploring the possibility of moving the club from Upton Park to the new stadium being built to host track and field events at the 2012 Olympics.

Magnusson's assurances for Pardew came after his consortium confirmed to the Stock Exchange that West Ham's main shareholders, including current chairman Terry Brown, had agreed to sell their stakes at a price which values the club at 85 million pounds.

The new owners are also taking on the club's 22.5 million pounds of debt.

Magnusson, 59, said: "I am both delighted and honoured that Terry Brown and his colleagues wish to support our offer for West Ham.

"We can now end the uncertainty of recent weeks and move forward into the next phase of development of this great club, with Alan Pardew leading our efforts on the pitch."

Magnusson indicated that funds would be available for new players as soon as the transfer window opens in January.

He said: "I will be continuing talks with Alan Pardew on how he sees the future on the playing side.

"This is very much his domain and he has my full confidence and support. He already knows that funds will be made available for the January transfer window but we need to discuss his needs and the investment that might be required to strengthen the squad."

Any new arrivals in January look likely to be preceded by the departures of Argentinian World Cup stars Carlos Tevez and Javier Mascherano.

The pair were brought to the club in the close season by Kia Joorabchian, an Iranian-born financier who had explored the possibility of organising his own takeover bid.

Tevez and Mascherano were brought to London without Pardew being consulted and the unsettling effects of their introduction to the squad have been linked to West Ham's struggle for form this season.

The club is currently just above the Premiership's relegation zone after finishing ninth on their return to the top flight last season.

Magnusson suggested that he favoured a move, in the longer-term, to a new stadium, although a switch to the Olympic stadium would be complicated by the government's assurances to the International Olympic Committee that it will continue to be available for athletics meetings after the Games.

"In terms of the club's location we are buying what we see, which is West Ham United at Upton Park," Magnusson said.

"However, if there is an opportunity to discuss a long-term move to the Olympic Stadium I would like to explore that, recognising that there will also need to be an athletics legacy from the London 2012 Olympic Games."

Magnusson plans to take an active role in running West Ham and will take over as chairman in a couple of weeks, at which point he will resign his Icelandic FA and UEFA executive positions.

The takeover has effectively been bankrolled by another Icelander, the wealthy financier Bjorgolfur Gudmundsson.

"The main financial supporter of our bid, Mr Bjorgolfur Gudmundsson, has given me full backing and responsibility to take the club forward," Magnusson added.

"He and I have known each other through football for many years and we share a passion for the game, particularly here in England.

"Mr Gudmundsson's commitment to the club is vital and he also believes that we can build something very special here at West Ham.

"There is a genuine excitement in the club about what we can achieve together, which I hope the fans will share.

"This club has so much to be proud of and I want everyone who loves and supports the club to bring their pride and passion to help build this next stage of West Ham's future."

Magnusson also said he is keen to maintain West Ham's reputation for passing football and fostering young talent.

"All the way back to 1966 and the World Cup winning team of Bobby Moore, Geoff Hurst and Martin Peters, this is something that I have admired about the club," he said.

"I am very committed to protecting and growing this part of the club's work."