Alan Shearer has been assured by the outgoing hierarchy at Newcastle United that the two groups leading the bidding for the club are intent on installing him as manager.

Shearer has received a progress report from Derek Llambias, the managing director, the tone of which was markedly upbeat. A takeover is still on course to be announced by the end of this month and the club's record goalscorer remains the sole managerial candidate of note.

To protect the integrity of the bidding process, neither Shearer, Llambias nor Mike Ashley, the owner, are aware of the identity of the interested parties, who are vying to buy the club for £100million. They have, however, been kept informed of developments and the nature of discussions by Seymour Pierce, the investment bank handling the sale.

Up to four groups - one of which is fronted by Freddy Shepherd, the club's former chairman - have been involved in substantive negotiations with Keith Harris, the executive chairman of Seymour Pierce, but two are understood to have moved ahead of the others in terms of demonstrating their financial strength and are eager to open talks with Shearer.

While the delay in appointing Shearer - who was in charge for the final eight matches of last season, culminating in relegation from the Barclays Premier League - on a full-time basis has prompted enormous frustration on Tyneside, a conclusion to the impasse may finally be approaching, even if relationships with any new owners would have to be forged.

There is no guarantee that Shearer's ambitious plans for rebuilding the first-team squad, which he submitted to Ashley in the immediate aftermath of relegation, would be approved, although the former England captain is reported to be optimistic.

Time is not on Newcastle's side, given that the players return for pre-season training in seven days and, as things stand, are to work under Chris Hughton, the coach. A programme of practice matches has been organised, but no players have been bought and, just as important, none have been removed from a crippling wage bill.

Shearer is convinced that the likes of Steven Taylor and Habib Beye, whose declarations of loyalty to Newcastle after relegation are being tested by a lack of activity and around whom he wishes to build his defence, will be persuaded to stay at St James' Park once he is named as a permanent successor to Joe Kinnear.

The same does not apply to Michael Owen, who will leave when his contract expires next week, but the striker is convinced that his former partner in the England attack is best equipped to take the club forward.

“I would like to think that Alan would be given the job,” Owen said. “He is obviously a new manager learning his trade, but you have got to start somewhere and the indications from what I saw of him, he is going to be a top manager in years to come. He is Newcastle through and through and that's important to the people of Newcastle.

“It's a club that not many people would understand, I would suggest, but he certainly understands it. He has certainly got the right credentials.”

Owen has reiterated his preference to remain in the Premier League and has been linked with Everton and Aston Villa, although Hull City are the only top-flight club to have made public their interest. “We will be speaking to Michael's representatives within the week,” Phil Brown, the Hull manager, said. “I would think he would have a number of offers and we'll have to be competitive. But I wouldn't sit down with him if I thought I was wasting my time.”

Sunderland, Everton and West Ham United have been monitoring the position of Beye, 31, the full back, who has another season left on his contract.