London: Rafael Benitez would prefer to stay on as Newcastle United manager, despite the fact West Ham are poised to make an official approach to the man they want to take charge of the team next season.

West Ham released a statement on Thursday night in which they assured fans they were close to appointing a manager with a proven record in Europe and the Premier League.

Benitez fits into that category, as does the former Manchester City manager Manuel Pellegrini, who is currently head coach of Chinese Super League team Hebei China Fortune. Pellegrini is also on West Ham’s shortlist, but the focus has centred on Benitez in recent days.

“We have left no stone unturned in selecting the individual we believe is the right man to take West Ham forward,” said the club’s co-chairman David Sullivan. “We are now very close to reaching an agreement. This is an exciting time for our football club. We are preparing to appoint a manager who has a proven record of success at the highest level of the game.”

The statement heightened fears on Tyneside that Benitez was set to leave, although sources close to him insisted last night they had not reached an agreement with anyone at West Ham and instead indicated that the Spaniard remains keen to confirm the size of his transfer budget with Magpies owner Mike Ashley. Newcastle, in turn, responded with a statement to Sky Sports News in which they said they were “confident Rafa Benitez will stay at the club”.

West Ham’s bullish running commentary on their search for a replacement for David Moyes cast doubt on those claims, particularly as Benitez has not confirmed he wants to stay publicly and is known to be unhappy with the lack of clarity at Newcastle.

Although Ashley released a statement on his club’s website on Sunday in which he expressed his desire for Benitez to stay on, promising to give him every penny the club generates in the Premier League, The Daily Telegraph understands the Spaniard has still not been told exactly how much he will have to spend in this window. That has infuriated and exasperated him. The ballpark figure for the transfer budget is believed to be pounds 50 million, with extra funds generated through player sales.

Part of the problem, though, is that Newcastle will not receive their next chunk of television money until mid-July. That will leave only two weeks of the transfer window to spend that money which could rule out early deals.

Benitez still has a year left on his contract. Any club who wants to employ him will have to pay the St James’ Park side pounds six million in compensation. Meanwhile, another manager linked with West Ham, Paulo Fonseca, has signed a new two-year deal at Shakhtar Donetsk.

— The Telegraph Group Limited, London 2018