FourFourTwo understands the Jets have whittled down their shortlist this week after interviews and are hopeful of completing a deal with a selected candidate over the weekend.

Newcastle had hoped to make an announcement late this week but there are still formalities to complete, although it’s understood a deal is very close.

Jets CEO Lawrie McKinna, football operations manager Joel Griffiths and Chinese chairman Martin Lee have been working through the process this week, with the time difference for European-based candidates and China-based Lee causing delays.

“There’s a preferred candidate but there’s still a bit to do, nothing major, but it’s ticking the boxes," McKinna told FourFourTwo.

Ernie Merrick and Mike Mulvey are believed to be among the top candidates for the role with the Jets preferring coaching experience, although McKinna said that didn't necessarily need to be in Australian football or the A-League.

“The last three coaches haven’t had much A-League experience," McKinna said.

"Experience in man management, coaching at the top level, that’s the kind of criteria we are looking at.

“There were a couple of great candidates come out who didn’t have that and they ticked a lot of boxes.

“Obviously we have to work within a budget, but it’s not going to be judged by who’s the cheapest, but who’s right for the job.”

Merrick had early A-League success with Melbourne Victory

Harry Kewell, Robbie Fowler, Mark Rudan, Ante Milicic and Josep Gombau have also been linked with the position but appear unlikely.

“There’s been a long list of names thrown around and a lot of them hadn’t even applied for the job," McKinna said. 

"Ernie has applied for the job, quite a few top European coaches and Aussies coaches too."

Scotland-born Merrick, 64, resigned from the Wellington Phoenix top job in December after leading the club for three-and-a-half years.

He led Melbourne Victory to two premierships and two championships during a six-year tenure.

England-born Mulvey led Brisbane Roar to the 2013-14 A-League double but was sacked after a poor start to the following season.

More recently the 54-year-old has worked in South-East Asia in roles with Malaysian clubs Sabah and Terengganu while he was also close to joining a Thai club late last year.

One of the new coach's first jobs will be to resolve the futures of Newcastle’s out-of-contract players.

Visa players Morten Nordstrand, Ma Leilei and Mateo Poljak will leave the Jets, opening up two foreign spots on their roster.

It’s understood one of those players must be Chinese under Lee’s chairmanship, while it’s unlikely the club will utilise its partnership with Chilean club Audax Italiano for a visa player at this stage.

Mike Mulvey during his Brisbane days