Newcastle have reached agreement with Rafa Benitez to see him remain as manager.

The news represents quite a coup for a club that was relegated to the Championship last season.

A three-year deal is expected to be announced later today which will contain assurances about player and staff recruitment for the Spaniard.

Benitez is reported to have been given complete control over recruitment and has also been promised a large transfer kitty in order to rebuild the side this summer. Benitez will also be allowed to put his own scouting network in place.

Newcastle are expected to sell Moussa Sissoko, Georginio Wijnaldum, Daryl Janmaat and Andros Townsend this summer and would expect to bring in around £40m for the quartet. With parachute payments from the Premier League insulating Newcastle from the worst effects of relegation, United should be in a strong position to secure an instant return to the top flight.

The 56-year-old signed a three-year deal to become Newcastle boss back in March, when he replaced Steve McClaren, but the contract was believed to have given him the option to walk away in the event of relegation.

Benitez oversaw a marked improvement in results but was unable to keep the club in the Premier League. But he has now decided to stay on at St James’ Park after reaching agreement with Magpies owner Mike Ashley and managing director Lee Charnley.

After the final game of the Premier League season against Spurs, Benitez rvealed he would like to stay.

The former Liverpool and Real Madrid boss stated at the time: “I said I am quite open and I am quite pleased with everything, the staff, everything, now it’s just to be sure that we have to do what we have to do to be sure that we can go up if I stay here.

“They know, we have been talking. I have the same feeling as the fans, they want a strong team next season to be sure we go up again.

“The way and the ideas will not be difficult to have, to have similar ideas, but we have to sit down and make sure of everything.”