Derek Llambias told the Chronicle: "Geoff Sheard is dealing with Keith Harris and we are still waiting for proof of funds."
A source close to Sheard (who spoke to the Chronicle) said today: "He’s keen to run a football club.
"It didn’t work out when he tried to take over Sheffield Wednesday but feels he has something to offer Newcastle.
"He’s got serious backing and is in negotiations with Seymour Pierce."