Newcastle United chairman Freddy Shepherd is ready to sell his stake in the club.

It is understood Shepherd may be ready to sell his family's stake in the club to sportswear magnate Mike Ashley, but then stay on at the helm under the new regime and continue to run day-to-day matters on Gallowgate.

The current chairman stands to make in excess of £37m for his shares, while Ashley, who acquired a 41.6% stake in the club when he bought out the Hall family in a £55million deal last month, would be within touching distance of the 75% ownership he would need to assume control.

Rumours on Tyneside suggest an announcement could come within 24 hours as St James Holdings Limited, the company set up by the billionaire to acquire shares in Newcastle, prepares to formalise its offer to shareholders.

Ashley was on Tyneside on Tuesday after visiting Shepherd in hospital last week as the chairman continued his recovery from a serious chest complaint, and was seen at the training ground, where he met new manager Sam Allardyce and transfer target Joey Barton as he discussed his £5.5million move to Tyneside.