Dalglish Rules Out Newcastle Return As Ashley's Search Goes on

Another day, another rash of rumors enveloping Newcastle United. The latest suggestions doing the rounds on Tyneside had Kenny Dalglish returning as manager and the owner, Mike Ashley, being bought out by a Nigerian consortium.

City sources cast serious doubt on the mooted Nigerian takeover, and Dalglish seemed bemused. "Nobody from the club has contacted me and I won't be returning," said the Scot last night. "It's sad that things have gone so wrong at Newcastle but their next manager won't be me."

David O'Leary remains in contention for the job but the club denied a report that they have been turned down by eight candidates including Terry Venables. Yesterday's official, if rather unlikely-seeming, line was that the matter is on hold until after tomorrow's Carling Cup tie at home to Tottenham Hotspur and will not be addressed seriously until Ashley chairs a board meeting on Thursday.

The search for a manager was deferred last week when Ashley and his directors travelled to Dubai in a forlorn attempt to sell Newcastle. "My understanding is that Mike Ashley has completely burnt his boats in the Middle East and Newcastle will not be bought by Arabs," said a city source. "You don't go to the Arabs, they come to you."

Ashley has engaged the services of Keith Harris, the chairman of the investment bank Seymour Pierce. Harris has brokered some major foreign takeovers of Premier League clubs and is endeavoring to find Newcastle new owners. Ashley's asking price is now believed to be much nearer £200m than the £450m-plus he had envisaged securing.

It is understood that Harris is likely to treat with skepticism yesterday's claims by Chris Nathaniel, the chief executive of NVA Management, who is fronting a consortium of Nigerian businessmen. Nathaniel said: "I am happy to tell you that well-meaning Nigerians have responded to me and our consortium of entrepreneurs has so far raised £350m to buy Newcastle."

The Football League has ruled out Watford and Reading replaying their weekend 2-2 draw despite the goal that never was. Reading had agreed to do so having been awarded the opener at Vicarage Road by the assistant referee Nigel Bannister when the ball had gone wide. Bannister is likely to be demoted or even suspended for the next round of league games.

Hull City have signed the midfielder Stelios Giannakopoulos, a free agent since leaving Bolton over the summer.