Rafa Benitez 'unhappy' with offer from Mike Ashley at Newcastle United

Ashley met Benitez, out of contract in 10 days, for talks in London last month over a new deal.

However, the club’s manager – who wants a defined budget and more freedom in the transfer market – is seemingly no closer to agreeing to an extended stay at St James’s Park ahead of the July 4 return of the players for the start of pre-season training.

Benitez, the club’s manager, is understood to be unhappy with the terms of the offer from Ashley, United’s owner. The Sun today report that the proposal from Ashley was “non-negotiable”.

Ashley’s it’s claimed, has promised a £50million transfer fund. However, it’s unclear whether that figure will also have to cover fees and wages.

Benitez was forced to sell to buy last summer – the club made a paper profit of more than £20million in player trading – after refusing to sign a new deal.

United recovered from a poor start to the season and finished 13th in the Premier League.

Speaking after the club’s season-ending 4-0 win over Fulham at Craven Cottage, Benitez said: “Someone will ask me the question, do I want to stay? It’s very easy. I can see the potential of this massive club, and hopefully we can do things in a way that will be good for everyone to move forward, maybe together.”

The damaging stalemate comes as fans wait for news on the Bin Zayed Group’s proposed £350million takeover of Newcastle.