The 28-year-old England striker is in the final season of his contract at St James' Park and could leave on a free transfer when it expires.

Owen has spent much of his three years since joining from Real Madrid on the sidelines because of injury.

'Michael Owen has been offered an extended and improved three-year contract,' Newcastle said on Sunday.

'The proposed terms of the new deal include an increased salary for Michael and demonstrate the club's commitment to keeping him. The club hopes that this enhanced contract offer will keep him at St. James' Park.'

Newcastle, which lost 3-0 at Arsenal on Saturday, has won only once in the first three league matches - thanks to Owen's goal against Bolton. -- AP