Michael Owen has told Newcastle United that he is eager to remain at the club beyond the end of his present contract, but the England forward will not accept a pay cut as the price for his loyalty.

The 28-year-old striker is relishing life under Kevin Keegan, but unless a new deal is agreed before next summer, Owen will be entitled to leave St James' Park on a free transfer.

Owen earns in the region of £120,000 a week at Newcastle, whose owners are attempting to exercise wage restraint. Negotiations are continuing and remain positive in tone, but at an age when he should be reaching his peak - in spite of his recent history of injuries - Owen expects his present terms to be extended. Keegan, the Newcastle manager, has spoken repeatedly of the importance of securing his captain's future.

The forward has been suffering from mumps this summer, but he scored seven goals in his final nine club games last season and is hoping to pick up where he left off.

“The end of the season was great,” Owen said. “When I get into a rhythm and I'm playing regularly it's fine, but since I've been here it's been stop-start, with a lot of injuries. It's probably been the first time in my career it's been like that.

“I had a few problems earlier on with hamstring problems, but it's been major things since I've been at Newcastle - six operations and none prior - so it was nice to finally get into a nice rhythm and score a few goals. That'll continue as long as I get on the pitch.

“Towards the end of last season we beat Sunderland 2-0 and went seven games unbeaten and there was a real feel-good factor about the squad. We were buzzing. It was a cracking run. Hopefully we can begin the new season in the same way as we ended the last one.

“We have quite a small squad, but a close-knit one and one with a lot of quality. It's a lovely honour to lead the team out.”