Michael Owen is ready to take a pay-cut to quit Newcastle United in January.

The Daily Star Sunday says Owen is out of contract at the end of the season, but aims to be out of Toon in the next transfer window.

His dream is to join a club either in the Champions League or with the ambition and resources to qualify for the world's richest and most prestigious club competition.

That puts both Manchester clubs - United and City - in the frame for Owen, 29 next month and fit again after a catalogue of injuries.

Old Trafford would be the ideal destination for Owen, who realises his next move will mean a substantial reduction in his weekly pay packet of £110,000.

Owen already has a new contract offer on the table - but won't be signing it.

The only scenario which could change Owen's thinking would be new owners at Newcastle and the instalment of his former England strike partner - Geordie legend Alan Shearer - as manager.

But otherwise Owen is eyeing a move back to his native north west, where he launched his goal-laden career with Liverpool.