The former Liverpool midfielder was pictured in the St James's Park directors' box last night just days after the Singapore-based Profitable Group he is involved with was linked with a £260m takeover of Newcastle.

United last night dismissed speculation that McMahon was there for talks on a buyout, and instead claimed McMahon was on Tyneside to advise the club on its Far East strategy.

Owner Mike Ashley – who paid £130m for Newcastle last summer – has always denied he is keen to sell, but the billionaire admitted last month he is looking for investors to share the financial burden.

However, a takeover is very much on the agenda, and the Gazette understands there have been hush-hush talks at the Copthorne Hotel on Newcastle's quayside over the past 24 hours.

And should the Profitable Group – a global investment firm – take over United, then McMahon would be given a senior position at St James's Park.

McMahon joined the firm as commercial director in charge of strategic sports investment earlier this year.

The 46-year-old had spells as manager at Swindon Town and Blackpool after hanging up his boots.