MIKE ASHLEY will offer Rafa Benitez a three-year contract and a transfer war chest of more than £100million.

The Newcastle owner is pressing his manager to sign after a summer stand-off that has seen Benitez work under severe cash restraints.

4 Newcastle boss Rafa Benitez is thought to be undecided on accepting a new deal Credit: Getty Images - Getty

Ashley is keen to end the dispute by getting the Spaniard to sign a fresh deal through until 2021.

And he is sweetening the offer with the promise of a major spend over the length of that contract.

Suspicion is so high on the Benitez side that he is yet to commit — despite the current state where Ashley will let him spend money only from sales.

If he does not sign this summer, it will leave him in a position where he is likely to run down his deal and get no further cash injections.

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4 Newcastle owner Mike Ashley hopes to settle his differences with manager Rafa Benitez by persuading the Spaniard to stay and splash out Credit: PA:Press Association

Meanwhile, Benitez is working to bring in two Championship players.

He is poised to offer around £6m for Bristol City left-back Joe Bryan.

Toon spies think the 24-year-old defender can do well in a couple of roles and give them cover.

4 Bristol City left-back Joe Bryant is a £6m target for Newcastle due to his versatility Credit: PA:Press Association

Benitez is also looking into a loan deal for Swansea’s centre-half Federico Fernandez to add him to his Newcastle squad.

The Argentinian can leave the relegated Swans for £6m but Benitez hopes that the club will consider a year-long temporary transfer.

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4 Magpies chief Rafa Benitez is pondering over a loan deal for Federico Fernandez Credit: Getty - Contributor