An American hedge fund backed by Japanese investment giant SoftBank has been holding talks with the Dubai-based Bin Zayed Group which is interested in buying Newcastle United Football Club for between £300 million and £350 million.

It is believed Fortress Investment Group is one of a number of parties talking to Bin Zayed about providing expensive debt financing for a takeover of the Premier League club, owned by retail tycoon Mike Ashley.

Newcastle United Football Club is owned by retail tycoon Mike Ashley

Bin Zayed Group is controlled by Sheikh Khaled bin Zayed Al Nahyan. His interest in buying the club emerged in May.

Sources close to the situation said talks between Bin Zayed and Ashley’s representatives had been put on ice. But Bin Zayed is thought to have appointed accountants from KPMG and lawyers from Pinsent Masons to work on a deal.

Fortress declined to comment. Bin Zayed Group did not return calls for comment.