Sam Allardyce has expressed growing frustration at the dearth of transfer activity at St James’ Park, but the logjam may have been broken by Manchester United’s acceptance of a £6 million bid for Alan Smith. If Newcastle United’s pursuit of the England player is fruitful, it should finally prompt the departure of Kieron Dyer, whose position on Tyneside is close to untenable.

Allardyce yesterday held discussions with Chris Mort, his new chairman, to clear the air on various issues, not least his disquiet at the paucity of his first-team squad. Signing defenders is a priority – he wants Boukary Dramé, Paris Saint-Germain’s 22-year-old Senegal international, to fill the problematic left-back role and also needs at least one experienced centre half – but his move for Smith points to renewed activity.

Newcastle have matched Middlesbrough’s offer for the striker, although they still face competition from Manchester City and, more significantly, Everton, whose pursuit is dependent on James Beattie joining Sheffield United. With Michael Owen, Obafemi Martins, Mark Viduka, Shola Ameobi and Andy Carroll on the club’s books, Allardyce already enjoys a surfeit of forwards.

Yet Smith’s versatility allowed him briefly to be reinvented as a midfield player at Old Trafford and if Dyer is sold, Newcastle’s options there would be weakened. The latter has informed Allardyce that he wishes to leave Newcastle for “family reasons” – his partner and children live in Ipswich – and after Sunday’s substitute appearance in the 2-0 victory over Juventus, he was abused by a number of supporters.

As Dyer left the stadium, a group of youngsters converged on his car, beat their hands on the windows and told him to “f*** off down to London”. While the incident involved a small vocal presence, it left the 28-year-old shaken; along with the player himself, many fans have accepted that his long, fraught spell on Tyneside has drawn to a natural conclusion.

Tottenham Hotspur and City have an interest in Dyer, but Upton Park remains his most likely destination. Unperturbed by the prospect of paying high wages – Dyer earns in excess of £80,000 a week – the East London club are confessed admirers, which they have now converted into firm contact. At present, however, stalemate rules and it may do so until Smith’s future is resolved.

Whether they have submitted a written offer is unclear, but West Ham have informed Newcastle that they are prepared to pay as much as £5.5 million for Dyer, with an additional £1.5 million based on appearances and if Alan Curbishley’s side qualify for Europe. In spite of Dyer’s long history of injury and illness, this is yet to meet with Newcastle’s approval.

Time is pressing, however, and Allardyce has expressed anxiety with the slow pace of change after Mike Ashley’s £133 million takeover. The talks between Allardyce and Mort were designed to expedite matters, as well as clarify recent reports that Kevin Keegan and Alan Shearer would be invited to renew their ties with Newcastle. Neither prospect is acceptable to Allardyce, although Shearer already fulfils an ambassadorial role for the club.

If his threadbare squad is causing concern, Allardyce is ecstatic with the impact made by James Milner, who almost joined Aston Villa a year ago. “I think he’s one of the best young wingers in the Premiership,” Allardyce said. “Steve McClaren [the England head coach] has been looking for a replacement down the left side, where England appear to have been short, and if James continues to progress, he could be very useful.”