NEWCASTLE officials will hold further talks with Luis Figo later this week, but have warned the Real Madrid midfielder he will have to drop his wage demands if he is to spend next season at St James' Park.

Figo has offered his services to a number of Premiership clubs after Real boss Wanderley Luxemburgo told him he did not figure in his first-team plans.

But, while five English sides have expressed an interest in the Portuguese playmaker, Newcastle are the only Premiership outfit to have held formal discussions.

As one of Real's Galacticos, Figo was earning around £90,000-a-week at the Bernabeu.

But, while Newcastle would be able to sign him for a nominal fee, chairman Freddy Shepherd has ruled out paying more than £4m in wages over the next 12 months.

The Magpies chief is still smarting from offering Patrick Kluivert a similar deal, only to see the Dutch striker sulk his way through the following 12 months as he struggled for fitness and form.

Figo's agent agent is expected to conduct further talks this week, but the 32-year-old will have to make a significant climb-down on his demands if he is to sign on the dotted line at St James'.

Meanwhile, Birmingham boss Steve Bruce remains hopeful of persuading Lee Bowyer to perform a U-turn on last week's decision to turn his back on the Midlands club.

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