The club wants Bruce to succeed Rafa Benitez at St James’s Park, but The Times reports that Sheffield Wednesday owner Dejphon Chansiri has refused owner Mike Ashley’s £3million offer of compensation.
Bruce and his backroom team resigned from their posts at Hillsborough this week, and Wednesday beat Northampton Town 4-0 last night without the 58-year-old, a boyhood United fan.
Newcastle – who lost Benitez on June 30, when his contract expired – had hoped to secure Bruce late last week, but the compensation issue is delaying his appointment at St James’s Park.
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In the meantime, United take on Wolverhampton Wanderers in the Premier League Asia Trophy in Nanjing, China, tonight. Ben Dawson and Neil Redfearn are in temporary charge of the team, which finished 13th last season.