The Evening Chronicle says Shearer has asked for up to £20million in order to bring in new players this summer.
One source told The Evening Chronicle: “The talks are ongoing, but there could still be a way to go before there is an agreement signed. Alan is desperate to help Newcastle and take on the job because of his love for the club.
“The state of the squad is a part of the negotiations. It desperately needs reshaping and freshening up – it doesn’t take a rocket scientist to work that out.
“The Championship is about pace and power, and this squad doesn’t have a lot of that. It’s a long 46-game season and you have to get used to the rigours of it.”
