Newcastle United owner Mike Ashley is in talks to sell the club to billionaire Sheikh Khaled bin Zayed Al Nehayan.
Sheikh Khaled, a cousin of Manchester City owner Sheikh Mansour, failed with a £2bn takeover of Liverpool last year.
It has been reported the deal for Newcastle is £350m.
"We have agreed terms and are working hard to complete the transaction at the earliest opportunity," the Bin Zayed Group said in a statement.
Walsall-born Sports Direct owner Ashley, who bought the club in 2007, put it up for sale in October 2017.
Newcastle finished 13th in the Premier League this season under manager Rafael Benitez, whose contract expires on 30 June.
"We can confirm the representatives of his Highness Sheikh Khaled Bin Zayed Al Nahyan are in discussions with Mike Ashley and his team about the proposed acquisition of Newcastle United Football Club," the statement read.
"We view it as an honour to have the opportunity to build on the strong support, history and tradition of the club."
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