Keegan in Ashley talks

It is understood the two men met in London, eight days after the 57-year-old former England boss resigned from his post at St James' Park.

There was no word from the club and it was unclear what the purpose of the meeting may have been.

Keegan tendered his resignation last Thursday evening after days of talks with the Magpies hierarchy failed to address his concerns over how team affairs were being run.

The manager was furious with the way the club had addressed the process of strengthening his squad when, after selling midfielder James Milner to Aston Villa for £12million with just days of the summer transfer window remaining, they recruited only Spain Under-21 striker Xisco and loan signing Ignacio Gonzalez.

Keegan met managing director Derek Llambias on several occasions, but having consulted the League Managers' Association and his lawyers he eventually decided to walk away.

That came as a surprise to his employers, who believed they were making progress, and when the LMA suggested on his behalf that interference from the boardroom had been the major factor, the club hit back.

Newcastle issued a statement on Saturday night claiming Keegan had been fully aware of his responsibilities, and those allotted to executive director (football) Dennis Wise and his recruitment team.

In recent days, a series of candidates have been linked with the vacant post, with Tottenham number two Gus Poyet, Blackburn boss Paul Ince and former France captain Didier Deschamps leading the way.

But Friday's news provided an intriguing twist to a saga which may not yet have come to an end, and provided fans with hope that there could yet be an amicable solution.