With Owen due to enter the final year of his current deal in the summer, chairman Chris Mort is keen to open discussions as soon as the campaign draws to an end.
Mort is determined to avoid the nightmare scenario of his club's record signing exercising his right to leave for nothing next summer.
That means tying Owen down to a new deal before next January, but Eriksson is hoping to make the former Liverpool and Real Madrid striker a counter-offer.
The Manchester City boss, who has already talked of his desire to sign "one or two" new forwards, is ready to approach the Newcastle hierarchy with a formal offer for Owen's services.
City owner Thaksin Shinawatra is willing to bankroll a significant spending spree at the City of Manchester Stadium, and Owen's name is understood to be at the top of Eriksson's wanted list.
The pair enjoyed a close relationship during Eriksson's time as England manager.
City boast the financial muscle to be able to match the £110,000-a-week pay packet Owen currently receives at St James', but Newcastle will hope the positive events of the last month will help persuade the striker to remain in the North-East.