City have been tracking the England international, but Newcastle owner Mike Ashley is ready to tie Owen to a £110,000-a-week deal to replace the one which expires at the end of next season.
Manager Kevin Keegan has been keen to negotiate with Owen and his advisers since guiding Newcastle away from the relegation zone with an unbeaten five-game run.
The former Liverpool striker, who joined Newcastle in an £18m switch from Real Madrid in the summer 2005, has started Newcastle's last 16 games, easily his best run in his injury plagued time at the club.
Owen owns a housing estate where all his friends and family live, plus (probably) enough houses to accomodate half of Liverpool ... but I'm sure the extra £20m will be put to good use.