Owen in talks over £16m Magpies move

Owen and his agent, Tony Stephens, arrived in the North-East and held discussions at Mitford Hall, near Morpeth, with a Magpies persuasion team - including manager Graeme Souness, captain Alan Shearer and chairman Freddy Shepherd.

After hours of discussions the 25-year-old headed off for more detailed negotiations with Liverpool before deciding where his future lies.

As things stand Newcastle hold the upperhand, having agreed a fee with Real Madrid which the Anfield board are reluctant to match, but Arsenal are also believed to be weighing up an 11th hour bid.

Liverpool are determined not to pay more than £10m for a player they sold for £8m a year ago, and are actively trying to sell Djibril Cisse to Marseille in an attempt to fund the Owen deal.

The future of England's top marksman has been unclear for a number of months but, having been omitted from the bench when Real opened the new season against Cadiz on Sunday, the chances of him moving on increased.

Newcastle are desperate for a new goalscorer, highlighted by their 550-minute wait since their last league goal. Owen has made no secret of his desire to rejoin his first club, Liverpool, but has also conceded he would accept a loan move to St James' Park if a Merseyside return can't be brokered.

Newcastle skipper Shearer, who is currently their most expensive signing at £15m, is in no doubt that Owen will be worshipped if he decided to uproot to the North-East.

"We're still in there fighting for him. I know he would be loved up here and if he did come he would be a hero," said Shearer, a good friend of the Madrid man from their days together with England.

"I've had several conversations with him but in the end he will make up his own mind as to what is best for himself."

The need to seal the Owen deal became even more urgent when one of Souness' back-up options revealed he will stay at Feyenoord.

Newcastle had earmarked Dutchman Dirk Kuyt as potentially the man to target if the Owen deal breaks down, but Kuyt is happy to stay in Holland.

Tottenham, Everton, Manchester United and Liverpool were also keen on the player valued at £12m.

But Kuyt revealed: "I have taken a definite decision. I am staying at Feyenoord. The feeling was not good, at the last moment, to leave such a fantastic club. I have weighed up what is good for me and I'm staying at Feyenoord."

That has left Souness, who will be told to forget it if he makes a bid for Middlesbrough's Mark Viduka, contemplating a return bid for Nicolas Anelka and other possible targets.

Turkish club Fenerbahce have been determined to receive £13m for the Frenchman this summer but a difference of opinion over his position at the club has revitalised the chances of him leaving for less.

And Italian striker Cristiano Lucarelli has claimed he has been tracked by Newcastle as the transfer deadline approaches.

Lucarelli top scored in Serie A last season with Livorno, and his goal record has led to interest in him from around the world.

And the £6m forward insists both Newcastle and Tottenham have made recent inquiries. Lucarelli said: "I can't deny that these two clubs have approached me."

But it seems increasingly unlikely Newcastle will be parting with midfielder Jermaine Jenas.

Tottenham are known to have been preparing a new £8m bid for the England midfielder but such is Souness' midfield problems he is not in a position to sell.

Emre and Kieron Dyer have both had recurrences of hamstring problems, while Lee Bowyer limped off in the second half of Sunday's defeat at the hands of Manchester United with a groin problem.

l Ruud van Nistelrooy has dedicated Sunday's injury-time goal at St James' Park to former manager Sir Bobby Robson.

The Dutchman, who worked with Robson at PSV Eindhoven, said: ''I spoke to Sir Bobby Robson in our hotel before the game and I promised him that goal. It was good to see him and he told me it was exactly a year ago he got the sack at St James' Park, so that goal was for him.''