“Newcastle United have met Real Madrid’s asking price and conditions,” said a Newcastle statement on club website www.nufc.co.uk.

“The agreed fee will be a record transfer fee for Newcastle United. “It is now up to the player and his advisor.”

Earlier, Owen, 25, only declared himself willing to spend a season on loan at St James’ Park, if his preferred option of a return to Liverpool failed to materialise.

He said: “I said that my ideal situation was to start the season in the Real Madrid team and if not I would prefer to return to Liverpool.

“The president understood and said he would try to help me achieve this. If the transfer cannot be finalised in time I have agreed to go to Newcastle United but only on a one-year loan. I need to be playing regularly in World Cup year.”