But the deal on the table would see Owen take a pay cut, as the club are offering reduced terms of £85,000-a-week to the 28-year-old.

And as such, it is highly unlikely that Owen – who will be able to talk to other clubs in January, and becomes a free agent next summer – will sign the contract.

Owen is understandably reluctant to take a pay cut, and the England international knows there will be clubs queuing to sign him next summer if he leaves St James's Park on a free transfer.

Kevin Keegan is desperate to keep Owen – who has come off the bench to score in successive games – on Tyneside.

But ultimately, he does not decide on contract matters, and with owner Mike Ashley determined to reduce the club's crippling wage bill, offering him an extension on his present £100,000-a-week terms is not an option.

Meanwhile, Owen is Keegan's only fit striker for tomorrow's game against Arsenal.

And he will make his 50th appearance for the club at the Emirates Stadium.

Owen's goal against Coventry City on Tuesday night took his tally for the club to 22.