News of the World says the Toon owner is prepared to sell the club on the cheap.
Ashley has so far spent £260million on the Magpies but is ready to sell for £120million if they are relegated to the Championship.
Earlier this season Ashley was asking for more than £300million for the Premier League club.
A city source told News of the World: “If Newcastle go down, things will change very quickly.
“There will be conjecture over plans and terms but it will be a quick sale. He will cut his losses and run.”
