Newcastle United are reportedly confident of keeping hold of Rafael Benitez after a positive opening round of discussions with the Spaniard.

The 56-year-old was unable to keep the Magpies in the Premier League upon taking over in March, but he quickly won over supporters and guided his side to three wins in their last six outings.

Benitez has a break clause in his contract which allows him to leave this summer following the drop into the Championship - United's second relegation in the past seven years.

Despite hinting after the final league game of the season that his future could lie away from St James' Park, it is claimed by BBC Sport that 'positive talks' have been held this week.

According to the same report, the former Liverpool manager's decision will depend largely on the funds he is given to strengthen the playing squad, as the club aim to make a quick return to the top flight.

Benitez replaced Steve McClaren at Newcastle with the North-East outfit in 19th place, taking charge for 10 games in total.