NEWCASTLE owner Mike Ashley is hoping to officially unveil Alan Shearer as the club’s new permanent manager before the end of the week.

But having spent most of yesterday locked in talks with Ashley and managing director Derek Llambias, Shearer is yet to formally accept Newcastle’s offer of a four-year contract.

Further discussions are expected to take place later today, but both parties are keen to secure a resolution within the next 24 hours.

Ashley last night issued an apology to Newcastle fans and staff but insisted the appointment of Shearer was “the best decision I have made.” In the statement he said: “Seeing Newcastle United relegated from the Premier League has been a catastrophe for us all.

I fully accept that mistakes were made during this and previous seasons and I’m very sorry for that. I would like to say sorry to our magnificent supporters who have turned up in their thousands home and away up and down the country, and who have given the team amazing backing throughout.”

While there are outstanding issues that are still to be resolved between Ashley and Shearer, sources close to the talks last night claimed considerable progress had been made as the two parties attempt to formulate a joint plan of action following Newcastle’s relegation.

However, with the entire future direction of the Magpies effectively up for discussion, major issues remain undecided.

Shearer has received assurances he will be given total control of the club’s future recruitment plans, and been told that he can appoint his own backroom staff once a number of necessary cuts have been made.

But with Newcastle’s total revenue expected to drop from £90m to around £40m next season, Shearer, Ashley and Llambias are still debating how best to reduce costs while still retaining a squad strong enough to compete for an immediate return to the topflight.

Shearer arrived at Newcastle’s Benton training ground at around 12pm yesterday lunchtime, accompanied by his erstwhile assistant, Iain Dowie, and long-term friend and associate Paul Ferris.

Llambias was driven into the training complex shortly after, and the two parties began their discussions at around 1pm.

Ashley arrived at Benton in a helicopter shortly before 3pm and, after landing on one of the training pitches, the owner met Llambias before entering the talks.

Having been impressed by Shearer’s approach since his temporary appointment eight weeks ago, Ashley is keen to secure the former England international’s services on a permanent basis.

Joe Kinnear’s contract officially ended on Sunday, and while the 62-year-old was offered a new deal prior to undergoing a triple heart bypass operation in February, there is now no chance of him returning to take charge of the Magpies next season.

There is no Plan B if Shearer decides to walk away from St James’ Park, but with a £280m investment to protect, Ashley cannot afford to give Newcastle’s all-time record goalscorer carte blanche in terms of devising a budget for next season.

If Shearer was to walk away, however, it is hard to imagine how Ashley could begin to rebuild his shattered reputation in the eyes of most Newcastle fans.

Either way, the sportswear magnate is keen to remove the current uncertainty as quickly as possible so he can begin to address the chronic imbalance between the current wage bill and next season’s anticipated revenue.

Sales are inevitable, even though Habib Beye yesterday followed Damien Duff ’s example and became the latest Newcastle player to publicly commit to a season in the Championship.

Beye, who missed Sunday’s defeat at Aston Villa with a hamstring injury, made 23 Premier League appearances last season and was one of the few Newcastle players to emerge from a miserable campaign with any credit.

The 31-year-old is one of the Magpies’ few saleable assets, and clubs in both England and France have privately declared an interest in the Senegal international.

However, with Shearer understood to be keen on retaining the full-back’s services, Beye has declared a willingness to remain on Tyneside despite Newcastle’s relegation.

“The players who will be here next year must put this club back in the Premier League,” said Beye. “I’m in. I have played for Newcastle for two years and love this club.”