The sports retail tycoon, who acknowledged the club's "unfulfilled potential ", outlined his plans to the club's minority shareholders as he closes in on a £133.8 million takeover after taking his stake in Newcastle to almost 70 per cent this week by purchasing chairman Freddy Shepherd's shares for £37.6 million.

Newcastle last landed a major domestic trophy, the FA Cup, in 1955 and in recent years have slipped down the pecking order, finishing 13th last season.

The reclusive Twickenham-born Ashley, 43, regarded as a hands-off but impulsive businessman, is set to return the club to private ownership, a move that has been applauded by Shepherd.

Ashley is planning to develop the club's academy and press ahead with stadium expansion plans.

"He wants to develop the Alan Shearers of the future by investing in the academy to produce home-grown talent," said a source close to the billionaire.

"One of the things that has impressed him most has been St James' Park and he really wants to drive forward the plans to extend the capacity and make it one of Europe's top grounds."