The source confirmed that both quit on Thursday in frustration at being unable to make day-to-day decisions at Newcastle, from lining up potential signings, extending player contracts or assessing whether or not to persist with coach Phil Stubbins as the side languishes second bottom of the A-League.

The duo’s unilateral action comes at a time when Tinkler – who failed to sell the Jets to Scottish Premier League outfit Dundee United last month for $5 million – is understood to be seriously contemplating handing back his A-League licence, possibly as early as the end of January.

He may not even have to wait that long with A-League chief Damian de Bohun and the FFA's chief operating officer John Kelly expected to visit Jets headquarters on Monday to determine the club's on-going viability.

The prospect of stripping Tinkler of his licence is looming large as the governing body ponders whether or not to seize control.

In a statement released to Fairfax Media FFA CEO David Gallop said: "FFA regrets that Ray Baartz and Robbie Middleby have resigned. They are committed Newcastle football people and have given so much to the Jets.

"It's very disruptive for a club to lose its chairman and CEO mid-season. Obviously this instability comes at a time when the club is already in a holding pattern.

"FFA wants to see the ownership situation resolved as soon as possible. The immediate steps will include sending senior FFA personnel to Newcastle next week to assess the club's current operating position."

Singapore-based one-time paper billionaire Tinkler, whose financial travails have been well documented, put the club up for sale in August.

He has lost $6 million in four years at the helm, in addition to the $5 million lump sum he paid for the licence.

He is not expected to remain owner after the end of this season, regardless of any action the FFA may take.

While neither Middleby nor Baartz were willing to elaborate further on their departures when contacted by The World Game, the source said: "What Robbie and Ray are trying to achieve is to bring things to a head, particularly in relation to the ownership of the club.

"Nathan Tinkler has really only been a de facto owner for 12 months now and the club is drifting and has no direction. They don't feel things can continue under the present situation.

"Lack of funding has been a major problem and they simply couldn't operate any more on any level. They are frustrated because they see so much potential in the club.

"They felt they had their hands tied in every facet of running the club."

With Tinkler distancing himself from the Jets, his eyes and ears have been Troy Palmer, the Hunter Sports Group's former CEO, who has remained in and around the club in an unofficial capacity while attempts have been made to offload it.

Despite the upheavls at the club it's understood there has been no disruption to players’ wages and all payments are up to date.

Tinkler, who took the reins in 2010, attempted to hand back the Jets licence in 2012 but amid legal threats from FFA and after long discussions with chairman Frank Lowy, he decided to retract the threat.

Tinkler was ousted from his ownership of the Newcastle Knights by the NRL in June.

With 10,003 members, the Jets have a strong support base, with both Middleby and Baartz hoping that a new owner can be found quickly should FFA step in to assume temporary charge.

The source added: “There is no clarity on what Nathan Tinkler will do from one day to the next, so everybody is really in the dark."

The club is currently in the midst of a mid-season review to be completed by 24 January when it resumes its A-League campaign after the AFC Asian Cup break. Middleby is to stay on until the end of this month.