Newcastle are being approached by a second Middle East investor over a potential takeover, according to a report.

​The Daily Mail have claimed that the group - based in Dubai - have been observing the current situation at St. James’ Park, but no formal bid has been made as they intend to meet owner Mike Ashely’s £350m valuation.

However, Amanda Staveley and her Middle East investment fund PCP Capital Partners are still favourites to take over the Magpies, but they remain cautious because of the fact that Rafa Benitez’ side are in a relegation battle, and it’s likely that a formal approach will only be made if ​Newcastle can uphold their top flight status.

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Newcastle sit just two points above the relegation zone and because of this, the Daily Mail's sources have indicated that the Dubai investors are not concerned about financier Staveley completing a deal, because of the fact that no deal will be made until the team is out of danger.

The two parties primary issue is the sale price, as Ashley is refusing to sell for less than £300m - to which Staveley matched - but no agreement has been made between herself and the Newcastle owner.

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Magpies' boss Benitez remains frustrated with the lack of action in the current window and the Spaniard is still waiting to discover whether he'll have any financial backing during the January market.

Staveley wants Benitez to stay on as manager, but she is also concerned that he could go at the end of the season if a takeover deal is not done in time.

The potential investors will be hoping that Newcastle can climb up the table and stay out of the relegation places for the remainder of the season.