Newcastle United have dismissed as "absolute nonsense" speculation that Mike Ashley is in negotiations to sell the club.

A club spokesman has scotched morning reports that the club's owner was preparing to sell the Premier League club to an American private equity fund for £420 million.

Ashley was said to be in discussions with InterMedia Partners, who had been told the business was available to buy, with the billionaire preparing to walk away from St James' Park with a profit of £286m. However, the club have dismissed the reports.

"It is absolute nonsense," a Newcastle spokesman said.

It is understood informal discussions between representatives of Ashley and counterparts from the New York-based outfit have taken place. Sources in America have confirmed the US company was interested enough to hold initial talks.

In the past, Ashley has insisted he is not looking to make a quick profit from the club, however, that has not stopped repeated talk in the City, and now further afield, that the business is for sale at the right price.

More news to follow.