Keegan's future at Newcastle still in doubt

(CNN) -- Kevin Keegan's future remained shrouded in mystery on Wednesday with the club still insisting he had not been sacked.

However, the chief of the English League Managers' Association admitted the Newcastle boss was in a "difficult position."

Richard Bevan said he had spoken to Keegan overnight and backed up a statement by the Premier League club issued that he had not left them after just eight months in charge.

"Newcastle United can confirm that discussions are ongoing between the board and Kevin Keegan," the club said in a statement.

"But the club and Kevin would like to reiterate that Kevin remains as manager. He has not resigned nor has he been sacked."

However, Bevan conceded Keegan's position was unclear and that talks were still ongoing. He told BBC Radio: "He (Keegan) is in a difficult position -- he'll be discussing really important issues with the Newcastle board over the next few days.

"The football club and fans everybody knows are massively important to Kevin and after such heavy coverage and speculation yesterday it was important to make this statement that he has not resigned."

Bevan refused to comment directly on media speculation that Keegan had disagreed with Newcastle owner Mike Ashley and the club's board over the futures of England star Michael Owen and midfielder Joey Barton.

It was reported that the club tried to offload star striker Owen and Barton, who was recently released from prison after serving a short sentence for attacking a man in his native Liverpool late last year.

"From Kevin's perspective he has not resigned and he will be discussing these issues and important issues with the Newcastle board over the next few days," added Bevan

Speculation about Keegan's future reached a fever pitch on Tuesday as rumors of his "sacking" spread across the city.

Hundreds of fans gathered at St James' Park to voice their disapproval and the club were forced to issue a statement on the Web site.

"Newcastle United can confirm that meetings between members of the board and manager Kevin Keegan were held both yesterday and today," it read.

"Kevin has raised a number of issues and those have been discussed with him.

"The club wants to keep progressing with its long-term strategy and would like to stress that Kevin is extremely important, both now and in the future.

"Newcastle United values the effort and commitment shown by Kevin since his return to St James' Park and wants him to continue to play an instrumental role as manager of the club. For the avoidance of doubt, the club has not sacked Kevin Keegan as manager."

Keegan returned to Newcastle for a second spell as manager in January of this year, hailed as a returning hero by fanatical supporters of the success-starved club.

It was a major coup for the club's new owner Ashley, who had quickly lost patience with previous manager Sam Allardyce.

Under Keegan, the team lost six of his first eight matches, but a late revival saw them finish a respectable 12th in the Premier League.

But the issue of finances to strengthen the squad appeared to put him at odds with Ashley while Keegan was also reportedly unhappy with the appointment of former Leeds manager Dennis Wise as executive director of football.

Last week Newcastle were forced to sell James Milner to Aston Villa in a reported $22 million deal, Keegan having earlier claimed that the England under-21 international would not be leaving St James' Park.

He was also frustrated in his attempts to add to the signings of Argentine pair Fabricio Coloccini and Jonas Gutierrez, with the club's only business on transfer deadline day the signing of Spanish striker Xisco and the loan of midfielder Ignacio Gonzalez.

Following a glittering playing career with Liverpool, Newcastle and England, Keegan retired from playing in 1984. He returned to the game as Newcastle boss in 1992, lifting them back to the top flight and a string of high finishes in the Premier League before leaving in 1997 to manage Fulham.

Keegan left Craven Cottage for an unhappy spell as England manager from May 1999 to October 2000 before returning to club management with Manchester City the following year.

After his departure from City in 2005, Keegan stepped out of the public limelight until his sensational return to the north-east at the start of the year.

Newcastle started this season with a creditable 1-1 draw at Manchester United and a home win over Bolton, but then followed a 3-0 thrashing at Arsenal.