The panel consisting of Sir John Wood and Sir Maurice Drake - both High Court judges - and Michael Beloff QC will also rule on Dalglish's claims that he was sacked and is owed compensation.

Dalglish, who parted with Newcastle on August 18 - just two games into the season - wants to be paid for the remaining two years on his contract believed to be worth around £600,000.

He is also seeking a £2.5m bonus promised at the end of the deal.

Newcastle have always insisted that Dalglish stepped down and was not fired.

Premier League chief Peter Leaver said: "Newcastle have been informed that there would be two judges and a QC representing the various parties.

"The next move is really up to them because we are raring to go."

The case will be the first use of the arbitration panel, part of the Premier League's articles of association when it was formed in 1992.