It is understood the billionaire and the 57-year-old met in London, eight days after Keegan resigned as manager at St James' Park citing interference from boardroom level as the main factor for his departure.

However, the League Managers Association, who have been working closely with the former England boss since matters came to a head, revealed no solution has been found.

A statement read: "The League Managers Association can confirm that talks to resolve several issues were held today between Kevin Keegan and Mike Ashley of Newcastle United Football Club.

"However, the discussion failed to reach a satisfactory conclusion."

It is not clear whether or not the two men will hold further talks after the news of the unexpected meeting sparked hopes of a reconciliation on Tyneside.

As rumours over the meeting's nature grew, some bookmakers responded by suspending betting on Keegan taking over as the next manager.

However, it is possible the pair may have been meeting to discuss a compromise over the terms of Keegan's departure.

There was no official word from Newcastle as the soap opera rumbled on, the club having once again found itself thrust into the headlines for unwelcome reasons.

Keegan tendered his resignation last Thursday evening after days of talks with the Magpies' hierarchy failed to address his concerns over how team affairs were being run.

The manager was furious with the way the club had addressed the process of strengthening his squad when, after selling midfielder James Milner to Aston Villa for £12million with just days of the summer transfer window remaining, they recruited only Spain Under-21 striker Xisco and loan signing Ignacio Gonzalez.

Keegan met managing director Derek Llambias on several occasions, but having consulted the LMA and his lawyers, eventually decided to walk away.

That came as a surprise to his employers, who believed they were making progress, and when the LMA suggested on his behalf that the board's role in the club's summer transfer dealings had been the major factor, the club hit back.

Newcastle issued a statement on Saturday night claiming Keegan had been fully aware of his responsibilities, and those allotted to executive director (football) Dennis Wise and his recruitment team.

In recent days, a series of candidates have been linked with the vacant post, with Tottenham number two Gus Poyet, Blackburn boss Paul Ince and former France skipper Didier Deschamps leading the way.

But Friday night's news provided an intriguing twist to the saga, and provided fans who were preparing to target their displeasure at Ashley and Wise on Saturday with hope that there could yet be an amicable solution. That now seems unlikely.

Supporters have been planning a series of protests before, during and after the Barclays Premier League clash with Hull, for which Northumbria Police are to deploy extra officers.