A proposed £340 million takeover of Newcastle United appears to have moved a step closer, with the Premier League having been informed of a bid led by the Public Investment Fund of Saudi Arabia.

The organisation is understood to have been formally made aware of the attempt to buy out Mike Ashley, with PIF, the largest sovereign wealth fund in the world, taking an 80 per cent stake if the deal goes through. Amanda Staveley’s PCP Capital is expected to acquire 10 per cent of the club, with the remaining 10 per cent taken by Reuben Brothers, the investment body of one of Britain’s wealthiest families, who own Newcastle racecourse and have a large portfolio of properties and assets worth more than £18 billion.

The Telegraph understands that the prospective new owners have been in contact with the Premier League to register their intention to buy the club. Staveley, Jamie Reuben, son of David Reuben and the driving force behind his family’s involvement in the deal, and Yasir Al-Rumayyan, governor of PIF, are believed to have been named among prospective directors. Al-Rumayyan is expected be chairman of Newcastle if the deal is completed. Under League rules Jamie Reuben would have to resign as a director of Queens Park Rangers so that he could also join the board.

It is understood that contact was made several days ago and it may take up to a month for the Premier League, which is under huge pressure because of the coronavirus crisis, to conduct checks to ensure the funding is in place and the principals pass the owners and directors test. However, even if the deal is signed no announcement is expected before then.

The move towards concluding a deal is a surprise, not least because of the uncertainty created by the effects of the pandemic, with all football suspended. The financial implications are significant, although Newcastle fans will be hugely relieved if the takeover is agreed and Ashley’s ownership finally ends. It will be one of the biggest takeovers in British football.

Talks had intensified since the start of this year with the hope that Ashley could finally be persuaded to sell Newcastle, though negotiations have been problematic.