Dennis Wise will continue on the Newcastle United payroll, despite his departure last week.

The Observer says Newcastle will continue to pay Wise's £1.5m salary despite removing the former England international from his controversial role as the club's director of football last week.

Derided as a member of the owner Mike Ashley's "Cockney Mafia" by the Newcastle support, Wise has been placed on gardening leave following Alan Shearer's populist appointment, pending possible legal action involving Kevin Keegan's departure from the club in September.

Keegan left in a dispute over player transfers, stating: "It's my opinion that a manager must have the right to manage and that clubs should not impose upon any manager any player that he does not want."

Since then, Keegan has been engaged in a compensation dispute with Newcastle, with the club counter-claiming against him for not fulfilling his contract. If the case goes to court Newcastle will rely on Wise to offer evidence that Keegan was aware of their transfer policy when he rejoined the club. Once the dispute is resolved Wise will be paid off with a year's salary.