Newcastle striker Michael Owen has been offered an improved three-year deal to keep him on Tyneside. The club has confirmed that the 28-year-old, who is in the final year of his current deal, will be offered a new contract amid speculation he could leave on a free transfer at the end of the season. A spokesman said: 'Newcastle United can confirm that captain Michael Owen has been offered an extended and improved three-year contract. 'The proposed terms of the new deal include an increased salary for Michael and demonstrate the club's commitment to keeping him. 'The club hopes that this enhanced contract offer will keep him at St James' Park.' Reports during the week suggested that Keegan had been told at a meeting with owner Mike Ashley that Owen would be offered only a one-year extension and a reduced £85,000 a week. However, the latest offer - formal details of which it is understood are yet to reach Owen's representatives - represent an improvement on his current salary of £103,000 a week.