RAFAEL BENITEZ held further talks with Newcastle United managing director Lee Charnley yesterday – and is set to confirm his intention to remain as the club’s manager by the middle of next week.

Benitez indicated his willingness to continue in his current position despite the Magpies’ relegation to the Championship when he met Mike Ashley in the aftermath of the final-day win over Tottenham, but indicated any agreement would be dependent on contractual issues being resolved and guarantees over budgets and transfer control being agreed.

The contractual discussions have gone smoothly, with Benitez effectively set to continue on the same terms he agreed when he replaced Steve McClaren in March. Newcastle will pay the Spaniard around £5m-a-year even though their annual television income is set to drop to around £35m-a-season following their demotion to the second tier.

Talks over next season’s budget remain ongoing, but both parties are understood to be broadly happy with the figures that have been discussed this week.

Benitez accepts he will have to sell some of his star names, with Moussa Sissoko and Georginio Wijnaldum expected to head the list of players who will be leaving St James’ Park this summer.

However, he has outlined the need for new additions in order to freshen up the squad that finished 18th in the top-flight, with QPR defender Steven Caulker the latest player to be linked, and will demand cast-iron guarantees over his control of all transfer matters.

With Graham Carr expected to leave his current post of chief scout shortly, Benitez will be free to remodel Newcastle’s recruitment policy to his own specification. The Spaniard is happy to continue working with current managing director Lee Charnley, but is expected to recommend the appointment of one or two new backroom figures.

However, there is unlikely to be a role for current Rangers head of recruitment Frank McParland, who was Benitez’s chief scout during his time at Liverpool.

As well as discussing recruitment issues, Benitez has also begun to work on Newcastle’s pre-season programme as they prepare for life in the Championship.

Unlike last summer, when McClaren was forced to take his players on a gruelling tour of the United States, the Magpies will not be making any long-haul trips in the next three months.

Instead, they are set to announce a pre-season tour of Ireland, with the Irish media having touted League of Ireland Premier Division side Shamrock Rovers as possible opponents. With the Championship season due to begin on August 6, Newcastle’s pre-season training is likely to begin at the end of June.

The make-up of next season’s squad should have become clearer by that stage, although the majority of the club’s transfer business is unlikely to be conducted until August.

Sissoko was linked with a possible move to West Ham yesterday, while Wijnaldum has refused to commit his future to Newcastle after his maiden season at St James’ ended in relegation.

When asked what the future would hold for him, Wijnaldum said: “I don’t know. We will see. I’m still devastated that we will be relegated. To be fair, I don’t think about the future now.

“I’m sad that we’re relegated, and that’s why I didn’t celebrate my goals (against Spurs). It’s a strange feeling when you’re relegated by a 5-1 win. We will see where the future will bring us.”

Wijnaldum’s personal form mirrored Newcastle’s fortunes over the course of the campaign, with the Dutchman’s inconsistency matching his side’s unpredictable nature and his failure to score a single away goal contributing to the Magpies’ dreadful record on the road.

“We were not stable as a team, and we lost too many games,” said the attacking midfielder. “I think that’s why we were relegated.

“We were unbeaten for six games (at the end of the season). If we had done that before, we would have had a better chance to survive.”