Michael Owen will not sign a new contract at Newcastle United before the January transfer window even though the package offered to the striker this week was more generous than expected.

Although it has been widely reported that Owen was presented on Monday with a three-year contract on a basic wage of £80,000 a week, the Newcastle hierarchy is willing to pay its leading player up to £90,000 a week for the next four years. That sum still represents a £15,000-a-week pay cut when compared to his current deal, which expires at the end of the season, but is a concerted attempt to keep the 29-year-old at St James' Park.

It is an improvement on the one-year, £80,000-a-week extension he was loosely offered in the summer before the former manager, Kevin Keegan, quit in September. However, although the offer is a generous one in the present financial climate and is thought to be considerably more than one of his suitors, Everton, are able to pay, Owen remains keen to see what other bids are made in January when he is able to open negotiations with rival clubs ahead of a Bosman free transfer in June.

Everton have a wage structure in place which means their highest earner is on roughly £50,000 a week. Although their manager, David Moyes, may be able to increase that figure as he does not have to pay a transfer fee for the striker, Owen hopes there will be bigger packages on the table if he keeps his options open in the new year.

While another potential bidder, Tottenham Hotspur, will also struggle to match the money on offer at Newcastle, Manchester City are believed to have shown an interest and Owen knows his wage demands would not be a stumbling block at Eastlands.

A planned meeting between Owen and the Newcastle manager, Joe Kinnear, did not take place yesterday, but the two are expected to discuss the issue informally at the club's training ground later today.