EXCLUSIVE: Newcastle will turn to Shearer as Redknapp stays at Portsmouth

Speculation had suggested Newcastle were ready to offer Redknapp a four-year deal worth £20 million to take over and it was widely believed the former West Ham boss would accept.

But Redknapp has opted to stay at Fratton Park after rejecting advances from Newcastle to become their new boss, according to reports.

The 60-year-old had been the favourite to take over from Allardyce and Sky Sports News claim he held talks with the Tyneside club last night.

However, after considering the move overnight, Redknapp arrived at Pompey's Eastleigh training ground this morning - the team are due to depart for the north-east to play Sunderland tomorrow - and told reporters he was staying with the club.

Speculation had suggested Newcastle were ready to offer Redknapp a four-year deal worth £20 million to take over and it was widely believed the former West Ham boss would accept.

Even Portsmouth chief executive Peter Storrie, who drove the manager away from the media circus which had gathered outside the club's training ground yesterday, admitted they would not stand in the way should Redknapp want to go.

"Harry is our manager and Harry is the way we see things going forward here. If Harry comes to us and says he really, really wants to leave Portsmouth Football Club then that is a different scenario," he said yesterday.

Mail Online has learned that Toon legend Shearer is still very much in the running to take the reins.

Unnamed sources close to the directors of the club admitted that Shearer was always high on their shortlist and that remains the case.

"The directors are looking closely at the situation but his appointment would appeal to fans.

"One of the main reasons that Michael Owen is at Newcastle is because of Shearer's influence. He will attact big-name players," said the source, who did not wish to be identified.

"Alan Shearer is still very much a part of the directors' plans."

Blackburn manager Mark Hughes is also still on the radar, though on Friday he denied any approach had been made.

Redknapp's decision to snub Newcastle will come as a massive blow to Magpies chairman Chris Mortt and owner Mike Ashley, who had been confident of landing their number one target after dispensing with the services of Allardyce on Wednesday.

They now find themselves back at square one after days of frenzied speculation with much more to come.

Newcastle privately insisted from the off that they were looking to recruit an experienced manager, and hinted that their focus was on one currently in employment.

That instantly ruled out fans' favourite Shearer, who intimated through friends in the immediate aftermath of Allardyce's departure that he was not a candidate to replace him.

But the story took in intriguing twist last night when reports surfaced that the 37-year-old had suggested he would take the job if offered it, although the claims were given little credence.

Shearer's name will inevitably figure significantly in the betting - he was swiftly installed as a 5-2 favourite by Ladbrokes this morning - and it remains to be seen how committed the club is to recruiting a man with a proven track record.

Blackburn boss Hughes found himself thrust into the race for the hot-seat as Redknapp emerged as the front-runner, although he expressed his satisfaction with his lot at Ewood Park yesterday.

Everton's David Moyes too was an early contender, but chairman Bill Kenwright later revealed he had received assurances from Ashley that his manager was not in his sights.

There is popular support too for former Chelsea boss Jose Mourinho and Martin Jol, while the frankly unlikely prospect of Kevin Keegan returning to St James', either as manager or in partnership with Shearer, remains for many the dream ticket.

However, there was talk on Tyneside in the wake of Redknapp's decision of former England boss Steve McClaren, an outsider in the betting at 33-1, nursing Shearer through the early years of his management career.

Having seen their first attempt fail, Ashley and Mort will now step up their search knowing all the time that as the days slip by, so to do their new manager's chances of strengthening a squad depleted by the departures of Habib Beye, Abdoulaye Faye, Geremi and Obafemi Martins for the African Nations Cup in the winter transfer window.

Redknapp had reportedly been offered a £20million kitty, but Allardyce admitted as he planned his own recruitment drive that the best signings will be made during the first two weeks of the month.

The former Bolton boss returned to the club's training ground yesterday to say his goodbyes to the players before they set off for this evening's Barclays Premier League clash with Manchester United.

They will run out at Old Trafford themselves not knowing what the future holds as the turmoil goes on.

By contrast, Redknapp will head for the dug-out at the Stadium of Light tomorrow still wearing Pompey colours, and he is likely to be greeted as warmly by the Sunderland fans as by those of his own club as they revel in their arch-rivals' discomfort.