The League Managers' Association confirmed talks were held between the pair but revealed "the discussion failed to reach a satisfactory conclusion''.
An LMA statement read: "The League Managers Association can confirm that talks to resolve several issues were held today between Kevin Keegan and Mike Ashley of Newcastle United Football Club.
"However, the discussion failed to reach a satisfactory conclusion."
It is not clear whether or not the two men will hold further talks, but we believe the stumbling block is Dennis Wise ... and we don't need to read between the lines to understand KK will not return if the former Leeds boss remains at the club.
Ashley, fearing a massive backlash from Toon fans on Saturday, wanted to discuss a compromise over the terms of Keegan's departure ... but he refused to give Wise his cards ... even though he was happy enough to sack Terry McDermott this week.
Keegan's assistant Terry McDermott and reserve team coach Adam Sadler were sacked this week.
McDermott had been taking first-team coaching since Keegan's position at the club were first cast into doubt on September 2.
McDermott had a long coaching association with the club dating back to Keegan's first stint in charge in 1992.