Newcastle chairman Freddy Shepherd has agreed to sell his shares in the Premier League club to billionaire Mike Ashley.

Shepherd will receive more than £37.6 million for his family's stake, which amounts to more than 28 per cent, with the sale raising Ashley's holding in United to a little under 70 per cent.

The Board at St James' Park have recommended that Ashley's 101 pence per share offer be accepted by the remaining shareholders, with the sportswear tycoon requiring 75 per cent to trigger a full takeover of the club.

A statement issued by Shepherd, read: "The offer from SJHL (St James Holdings Limited - Ashley's company) is at a level which fully reflects both the performance of Newcastle and its prospects and ambitions for the future.

"The board believes that SJHL and Mike Ashley will be excellent custodians of Newcastle United's heritage and will provide the best possible opportunity for the club to flourish in the future, to the benefit of the company and its fans."

SJHL will post the offer document to shareholders today.

Ashley emerged as a potential new owner when he paid Sir John Hall and his family £55 million for their 41.6 per cent stake last month.