Keegan ultimatum - sack Wise and give me complete control

In a strongly-worded letter sent to owner Mike Ashley through Keegan's legal advisers, the stricken manager told the board he must have:

¿ Control of all first-team affairs including full knowledge of player arrivals and departures.

¿ Control of first-team contracts, after James Milner was allowed to join Aston Villa when Keegan wanted him to stay.

¿ The removal of executive director (football) Dennis Wise and Tony Jimenez, vice-president (player recruitment).

Looks like I beat you to it, Kev: Alan Curbishley (left) greeting Kevin Keegan. The pair talked by phone about their similar positions after the West Ham manager lost his job

The aggressive approach from Keegan was seen as a legal tactic to manoeuvre himself into a stronger position following two days of bitter in-fighting.

Last night, a source close to the club claimed Keegan was 'unlikely' to continue as manager, although he still had not walked out and the club were reluctant to sack him.

Keegan was earlier offered a £2million take-it-or-leave-it package to go. The proposal included a secrecy clause preventing the 57-year-old from revealing details of the split. As things stand, Keegan would be due £8million in severance pay if sacked, but owe £1m to the club in compensation if he quit.

Ashley is hoping to avoid a supporter backlash at Newcastle's next home game against Hull a week on Saturday, and Real Zaragoza coach Marcelino Garcia Toral has emerged as a surprise contender to take over.

But there is more trouble ahead with Ashley facing a player revolt. The entire squad are furious with the decision to put them all up for sale on Monday, transfer deadline day, and the board's handling of the Keegan crisis. There is unequivocal support for the manager within the dressing-room and anger, particularly among senior players, that they have not been contacted or consulted.

Captain Michael Owen is expected to lead a delegation which will demand talks with Ashley and chairman Derek Llambias. The same players are adamant they do not want Keegan replaced by Wise, Gus Poyet or Toral, who only joined Zaragoza in May.

Keegan missed training again yesterday and has not been seen by the players since Monday, when he stormed out of the training ground.

While assistant Chris Hughton took the session yesterday, Keegan was locked in talks with Ashley, Llambias, his lawyers and representatives of the League Managers' Association.

LMA chief Richard Bevan said: 'We've held a first round and further talks are planned.'

Newcastle later issued a statement aimed at clarifying Keegan's position. It read: 'Newcastle United can confirm discussions are ongoing between the board and Kevin Keegan. Both the club and Kevin would like to reiterate that Kevin remains as manager. He has not resigned nor has he been sacked.'