Oliver Glasner has confirmed he will leave Crystal Palace at the end of this season, having informed the chair, Steve Parish, in October that he wanted “a new challenge”, and said the captain, Marc Guéhi, is on the verge of joining Manchester City.

The Austrian, who led Palace to their first major trophy when they won the FA Cup last season, is out of contract in the summer and has been linked with Manchester United in recent weeks. Glasner said last week he was planning further talks with Parish to resolve his future but revealed before Palace’s game at Sunderland on Saturday that he would be leaving the club.

“A decision has already been taken, months ago,” said Glasner. “I had a meeting with Steve in October, the international break. We had a very long talk, and I told him I will not sign a new contract. We agreed at the time it was best to keep it between us. It’s the best that we could do that and keep it confidential for three months. But now it’s important to have clarity, and we had a very busy schedule so that’s why we didn’t want to talk about it. Steve and I want the best for Crystal Palace.”

He also revealed that Guéhi would not be part of Palace’s squad that travels to the north-east, with City closing in on signing the England defender. He said: “My latest understanding is that a deal with Marc is in the final stages. I can’t confirm a club, because it’s still not done but it’s in the final stages. The result is that Marc doesn’t play tomorrow for us.” - Guardian