The Sun claims contracts have been signed and submitted to the Premier League in a £350million takeover which will end Ashley's nightmare 12 years on Tyneside.
Shaikh Khaled is cousin of Manchester City owner Sheikh Mansour and has made his billions through Bin Zayed Group - a leading group of businesses with diverse interests in the local and international markets.
It is further claimed the 61-year-old is keen for Rafa Benitez to remain as manager and wants to provide the much-desired funds in order to bolster the Spaniard's squad this summer.
He previously failed in a £2billion bid to buy Liverpool and is a senior member of the Abu Dhabi royal family, whose estimated worth is £130bn.
Newcastle have declined to comment on whether the reports are true.