The 29-year-old England striker's current £105,000-a- week deal runs out next summer but the new three-year offer is £80,000. A series of bonuses could boost his weekly wage if he plays in 80 per cent of games, says The Sun.
Owen is unlikely to sign a new deal but a Toon source said: "Michael has been made a very good offer. The ball's in his court."
Everton and Tottenham are keeping tabs on the situation.