Pardew has been told his can splash the cash as he draws up his shopping list.
But he must also cut his bumper squad to make room for the new faces.
It means the out-of-contract quartet of Shola Ameobi, Brede Hangeland, Jerome Thomas and Owen Garvan will all leave.
Pardew will also listen to offers for Adlene Guedioura, Barry Bannan, Adrian Marriapa, Zeki Fryers and Jonny Williams.
Steve Parish will loosen the purse stings on the basis that the Eagles boss works with a smaller but stronger squad.
Co-chairman Parish said: “The wage bill is creeping up and up.
“I think the challenge now is to manage it properly.”