Incoming Newcastle United boss Matthias Jaissle tended his resignation at Al-Ahli over a contractual dispute, according to reports in Saudi Arabia.
Newcastle are in advanced talks for the German manager to come in as Eddie Howe's successor after the latter's decision to walk away from the post on Thursday.
Howe quit the post after holding discussions with the club's hierarchy following a disappointing 2025/26 campaign and the sale of key players Anthony Gordon to Barcelona and Sandro Tonali to Tottenham, with captain Bruno Guimaraes also expected to make a move to Arsenal
It quickly emerged that Newcastle were in talks with 38-year-old Jaissle to make the move to St James' Park.
Jaissle has just led Al-Ahli to back-to-back AFC Champions League Elite triumphs, having previous won two Austrian Bundesliga titles while in charge of Red Bull Salzburg.
Saudi outlet Al-Riyadh write that Jaissle has handed in his resignation at Al-Ahli, although it does not yet appear to have been accepted and officially he remains in the post.
Al-Ahli are now said to be in the process of finding a replacement and Jaissle's departure is now expected to be a formality.
However, it seems that his resignation was not specifically with a view to taking the Newcastle job, but rather over a disagreement in terms on a contract renewal.
Al-Riyadh report that Jaissle wanted a clause dictating that he would be paid his salary in full in the event he was dismissed from the post.
The club were not so keen on that, instead offering a maximum of six months' salary, leading the head coach to submit his resignation to the club.
Newcastle are now looking to rebuild their squad in a bid to improve on last season's 12th-place finish.
United had earned Champions League qualification by finishing fifth the previous season.
The club have already reinvested some of the money they brought in by selling Gordon and Tonali, with goalkeeper Ewen Jaouen, winger Bazoumana Toure, and midfielders Sean Steur and Aladji Bamba all joining for a total outlay of £111m.
