Michael Owen has agreed to join Newcastle from Real Madrid.

The England striker will undergo a medical on Tuesday before signing a four-year deal with the Newcastle, who are reported to have paid a club record £17m for Owen.

The move concludes a lengthy saga which has seen Owen linked with several Premiership clubs, although the 25-year-old did express a preference for a return to his former club Liverpool.

However, with Liverpool not prepared to pay more than the £8m they received for Owen when he joined Real a year ago, the prospect of a return to Anfield always looked remote.

“Bringing Michael to the club will rank alongside the signing of Alan Shearer as my proudest moment at Newcastle United,” said chairman Freddy Shepherd.

“Newcastle fans love centre-forwards and Michael is a fantastic goalscorer.

“He’s someone we would love to build the team around and we hope he can help us bring success to the club.”

Owen was not even on the bench for Madrid first game of their season after falling behind Ronaldo, Raul, Julio Baptista and Robinho in the pecking order.

Yesterday he met Newcastle chairman Freddy Shepherd and his son, manager Graeme Souness, captain Alan Shearer and coach Dean Saunders.

Newcastle said in a statement on their website: “England striker Michael Owen held talks with Newcastle about a move to St James’ Park.

Shearer told BBC Five Live he had spent “a fortune in phone calls to Madrid” trying to persuade his former England strike partner to move to Newcastle.

“We have three days left to try to convince him to come here. We’re still in there fighting for him,” he said.

“I know if he came here he would be loved. They love their goalscorers up here and he would be a hero.

“I know better than anyone what reception he would get here. I’ve had several phone conversations with him.

“But I don’t have to tell him what passionate supporters we are. In the end he’ll make his own mind up and will do what is best for himself.”