FULHAM are set to step up their pursuit of Newcastle midfielder Gary Speed as the Magpies complete the capture of Nicky Butt.

Butt will arrive on Tyneside today to discuss personal terms after Newcastle agreed a fee of £3.75m with his current club Manchester United. The England international is keen to move to the North-East after he was squeezed out of the first-team picture at Old Trafford last season.

Butt considered moving to Birmingham during the last transfer window in January, but opted to stay and fight for his place in the Manchester United line-up.

That move backfired when he was consistently overlooked by Sir Alex Ferguson but, while Birmingham approached him again last month, the lure of European competition has persuaded the 29-year-old to move to Newcastle.

Butt is currently nursing a medial ligament injury sustained in training during Euro 2004, but that is not expected to prevent him passing a medical later this week.

Butt's arrival swells Newcastle's midfield ranks even further, with Speed, Lee Bowyer, Hugo Viana and Jermaine Jenas already battling for the two central midfield positions.

Attempts to move on £8.5m misfit Viana have proved unsuccessful, so United have resigned themselves to waving goodbye to Speed.

The Wales international has made more Premiership appearances than any other player, and has racked up 284 appearances since joining the Magpies from Everton in 1998.

He was a near ever-present last season but, at 34 years of age, it is unlikely he would be able to withstand the rigours of Premiership football for another full campaign.

Speed recently stressed that he would be willing to stay and fight for his place no matter who Newcastle signed this summer, even going so far as to turn down a possible move to Coca-Cola League side Leeds as part of the negotiations over James Milner.

But the arrival of Butt has forced Newcastle into some tough decisions, and Speed would be unlikely to stay if United made it clear he was surplus to requirements.

Fellow Welshman Chris Coleman has made no secret of his desire to sign the veteran midfielder, and the Fulham boss is expected to make a formal approach to the Magpies this week.

Meanwhile, Newcastle chairman Freddy Shepherd has described new signing Milner as "one of the best English prospects of his generation".

Milner will join up with his team-mates for the first time today as Newcastle return to pre-season training ahead of their Far Eastern tour to Thailand and Hong Kong.

The 18-year-old signed a five-year deal with the Magpies on Friday after completing a move that could eventually be worth £5m to his former club Leeds. This is one of the most exciting signings I have made since becoming Newcastle chairman," said Shepherd.

"We have brought some top youngsters such as Kieron Dyer, Jermaine Jenas and Hugo Viana to the club during my time, but this is potentially the best deal of them all. We have recruited a player who all the top judges rate as one of the best English prospects of his generation. I don't want to make comparisons with Wayne Rooney, but most experts agree that James Milner has the natural ability to follow Rooney into the England side.

"I'm convinced that playing at Newcastle with seasoned international stars such as Alan Shearer, Craig Bellamy, Shay Given and his old Leeds colleagues Jonathan Woodgate and Lee Bowyer will develop his learning curve."