MICHAEL Owen has not ruled out extending his stay at St James’ Park – but the Newcastle striker will not be signing a new contract until the end of the January transfer window at the earliest.

Owen was formally offered a new deal on Monday, with Magpies officials understood to have tabled a three-year contract, with the possibility of an additional fourth year, at between £80-90,000 a week.

That represents a significant reduction on the striker’s current terms, and Owen will spend the next five weeks waiting to discover if any of Newcastle’s Premier League rivals are willing to make an improved offer.

The England international, who is out of contract at the end of the current campaign, is free to talk to prospective employers from January 1, and is keen to discover whether anyone is interested in securing his services.

Consequently, this week’s contract offer will remain on the table throughout the transfer window, forcing Joe Kinnear to fend off inevitable questions about Owen’s loyalty and dedication to the Newcastle cause.

Everton, Manchester City, Tottenham and Chelsea have all been linked with a possible January move for the 29-yearold, but it remains to be seen whether any will be willing to match the multi-million pound offer tabled by Newcastle this week.

Everton and Spurs would have to demolish their wage ceiling to entice Owen, while Chelsea owner Roman Abramovich has pledged to reduce his club’s wage bill next month, rather than increase it.

Manchester City are awash with cash following this summer’s takeover by Abu Dhabi United Group, but manager Mark Hughes could come under pressure from the club’s owners to sign a highprofile foreigner rather than an ageing English striker who has been cast to the periphery of Fabio Capello’s national team.

Owen’s star has waned considerably in the last 12 months, despite a record of 16 goals in 30 Premier League appearances since returning from injury in mid-January.

He remains one of the most prolific strikers in the English top-flight, but while prospective employers can sign him on a Bosman-style free transfer at the end of the current campaign, his age and injury record will count against him.

He could yet find that Newcastle’s contract offer is not surpassed, even though Everton skipper Phil Neville last night urged his club’s board to make an offer for the former Liverpool front man.

“He’s the best striker in England and you would welcome a striker like that in your club,” said Neville. “He’s a Newcastle player at the moment, so it’s just mere speculation.

But a player like that would be a major asset for this club.”

Wigan boss Steve Bruce was rather less effusive, admitting that Newcastle’s latest contract offer had blown his club out of the water. Wigan were one of a number of English clubs to have approached Owen before he signed for Newcastle in 2005.

“I know the chairman is a fan of Michael Owen, but I don’t think we could afford his wages,” said Bruce.

“As far as signings are concerned, we haven’t got anything signed and sealed as people have been led to believe.”

■ It was Carrolls for Christmas yesterday as striker Andy Carroll grabbed a festive hattrick in Newcastle reserves’ Totesportcasino.com League Cup win over Carlisle.

Carroll was the star of the show as Newcastle’s second string scored six second-half goals without reply en route to a 6-1 win over the Cumbrians.

Trailing to a first-half strike from Tom Aldred, Newcastle were level when Sam Amoebi scored with a low shot seven minutes after the break.

Carroll scored two goals in two minutes to make it 3-1, and Kazenga Lua Lua extended the visitors’ lead in the 72nd minute.

Carroll completed his hattrick two minutes later, before Jonny Godsmark rounded off an emphatic away win.