West Ham are ready to make a formal approach for Rafael Benítez and are giving serious consideration to triggering the £6m release clause in the Newcastle United manager’s contract.

Benítez is the first choice to replace David Moyes but West Ham want to keep their options open and retain a strong interest in Manuel Pellegrini. While they have denied a report in Chile claiming that the former Manchester City coach is set to be unveiled in London, they want to speak to him. Newcastle’s manager, however, remains West Ham’s No 1 choice and there is increasing concern on Tyneside that Benítez will move if he receives a satisfactory offer.

West Ham’s hardball approach to finding a manager already looks risky | Jacob Steinberg Read more

Although West Ham have misgivings about how much it will cost in compensation there is an increasing belief Benítez would represent value for money. Given he is in the final year of his Newcastle contract, lawyers may end up ensuring the release clause is less than £6m, his annual salary.

West Ham have long admired Benítez and almost appointed him after parting company with Sam Allardyce three years ago, only for Real Madrid to step in. The two parties have remained on good terms and West Ham are hoping to capitalise on Benítez’s growing dissatisfaction at Newcastle, who have yet to commit to giving him more transfer backing.

The Fiver: sign up and get our daily football email.

There will be complications to iron out before a deal can be agreed. West Ham are concerned there will be further compensation if Benítez ends his spell on Tyneside and have been told the Spaniard wants his contract to contain a large severance package. They would also have to convince him that he will receive funds to strengthen an unbalanced squad. It is understood that Moyes was dissatisfied with the money available for summer signings. West Ham have said they expected to appoint a manager within the next seven days.

Benítez is well aware of the sometimes poisonous politics at West Ham but any semblance of trust in an always remote relationship with Mike Ashley, Newcastle’s owner, has been eroded after a series of transfer-market promises were broken last summer.

England's World Cup hopes, Everton and trigonometry – Football Weekly Extra Read more

Ashley is desperate for Benítez to remain and extend his contract, not least because having the former Champions League-winning manager in place could help him in his ambition to sell Newcastle for as much as £400m. In order for him to stay put in the north-east, Benítez would need guarantees as to his transfer budget and proposed improvements to Newcastle’s training ground and academy. His desire to sign some experienced players over the age of 26 has long been a sticking point with Ashley, who prefers to recruit younger professionals with greater sell-on potential.

Benítez and Ashley have not met for talks, with negotiations being conducted by phone and email between the former Liverpool manager’s representatives and Lee Charnley, Newcastle’s managing director.

David Sullivan, the West Ham co-chairman, interviewed Paulo Fonseca at his Essex home on Monday but it has emerged the Portuguese has extended his contract with Shakhtar Donetsk.

West Ham have also been offered a chance to speak to Claudio Ranieri. The Italian, who led Leicester City to the Premier League title in 2016, is available after being sacked by Nantes. West Ham will consider Ranieri if they cannot attract one of their favoured candidates.