GRAEME Souness last night conceded that Nicky Butt's long-term hamstring problem was an "enormous blow" to Newcastle's hopes of a return to the Champions League.

Butt has been ruled out until the New Year after scans revealed tendonitis in his hamstring.

The England international has been hampered by the problem since making a £2.5m switch from Manchester United this summer.

But after attempting to cure it through injections, Newcastle's medical staff have finally had to admit defeat.

A prolonged spell on the sidelines is now the only cure, with Butt certain to miss crucial games against Chelsea, Liverpool and Arsenal this month.

The midfielder is unlikely to return before the middle of January, and Souness admits his absence will hamper his side's attempt to recover from their recent poor run.

"Nicky's been told he must rest for between four and six weeks," confirmed the Newcastle boss. "That's an enormous blow for us and Nicky's extremely disappointed as well.

"I think he arrived with it. It's something that's been niggling away at him for a while and it's not had a chance to settle down.

"He's been complaining about it ever since I've been at the club and, during that time, it's not been right.

"He just needs rest now. He has had some injections, but we've been told that it wouldn't be a good idea to have any more of them and that rest is the only cure."

With Newcastle travelling to Premiership leaders Chelsea tomorrow, Butt will be joined on the sidelines at Stamford Bridge by skipper Alan Shearer.

Souness is refusing to take any risks with Shearer's troublesome thigh strain, so Craig Bellamy will partner Patrick Kluivert up front and midfielder Jermaine Jenas will retain possession of the captain's armband.

The 21-year-old has watched United concede four points to Bolton and Everton in the last month and, while neither of those sides are renowned for their flowing football, Newcastle will need to match their workrate and will to win if they are not to leave Stamford Bridge empty-handed for the fifth time in six years.

"You have got to be resilient," said Jenas. "We have got to stick together and we have to go down there with some kind of game-plan as well.

"Bolton epitomise that. They cause a lot of teams problems - Everton always do the same thing.

"But I don't think we will be going down there trying to destroy the game. We will go down there to play football.

"We gave them problems when we played them up here in the Carling Cup. Down there it's going to be different, but hopefully we'll still come out on top.

"At the end of the day, they've got great players. They've got players who can shoot from outside the box as well as players who can deliver.

"You can't just sit on the edge of your own box and defend - you've got to go and play yourselves as well."

Souness' thoughts were focused on his defence yesterday, as the United boss travelled to Holland to watch transfer target Jean-Alain Boumsong play in Rangers' UEFA Cup game with AZ Alkmaar.

The French centre-half remains top of his January shopping list but, after also being linked with Bayern Munich's Samuel Kuffour, the Scot is expecting some hard bargaining if he is to prise any of his targets from their current clubs next month.

"We're being linked with anyone and everyone who's available or is about to become available," said Souness.

"It's quite simple - we are looking for defenders. I think we need some defenders at the club to strengthen the squad, but we have some good players here.

"To improve us, any new signings are going to have to be top players. Top players play for the top teams, the top teams are generally in the Champions League or the UEFA Cup and, in January, I'd be very surprised if we could get the players we want."

* Chairman Freddy Shepherd has confirmed that Newcastle have made an improved contract offer to full-back Olivier Bernard.

The 25-year-old's current deal expires at the end of the season and, if current talks break down, he would be free to talk to potential suitors next month.

Bernard has repeatedly criticised the Newcastle board for their unwillingness to meet his demands but, after offering a five-year deal believed to be worth around £1m a season, Shepherd is adamant the club have gone as far as they can go.

"We have tried to come to a compromise with Olivier Bernard and his representatives," said the United chief. "We have made what we consider to be a very good offer.

"It's an improved offer and we are hoping that he decides to sign it and play for us for the next five years."

* Former Newcastle midfielder Rob Lee made his debut for Oldham in their 3-1 LDV Vans Trophy win over Hartlepool on Tuesday and has recommended former St James' teammate Wayne Quinn for a trial at Boundary Park.

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