Keegan situation unresolved

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The League Managers Association confirmed that Keegan met Ashley in London to "resolve several issues".

Reports of their meeting led to speculation on Tyneside that Keegan, who resigned last week citing interference in transfer policy, might return to St James' Park. However, such a remarkable turn of events now seems unlikely.

The meeting had been unexpected, with Keegan's relationship with the club thought to have irretrievably broken down.

Keegan resigned last Thursday after failing to settle his differences with the board following three days of discussions.

The reason for the talks was also unknown, but news they had taken place briefly raised hopes among supporters that Keegan could be reinstated.

Some bookmakers responded to the uncertainty by suspending betting on Keegan taking over as the next manager.

However, it is possible the pair may have been meeting to discuss a compromise over the terms of Keegan's departure. Keegan's contract with the club is thought to have included a clause stating that whichever party broke it would owe the other £2million in compensation.

It was suggested the 57-year-old could try to counter this by pursuing a claim for constructive dismissal.

The LMA statement read: "The League Managers Association can confirm that talks to resolve several issues were held today between Kevin Keegan and Mike Ashley of Newcastle United Football Club. However, the discussion failed to reach a satisfactory conclusion."