Transfer news: Newcastle United have moved to dampen speculation linking Michael Owen with a move away from the club by offering the England striker an improved three-year extension to his current contract. Reports in this morning's press had claimed Owen was up for sale for as little as €2.5 million.

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 suggested that manager Kevin Keegan had been told at a meeting with owner Mike Ashley that Owen would be offered only a one-year extension and a reduced salary.

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 €130,000 a week.

Elsewhere, Chelsea target Robinho has made a desperate late bid to persuade Real Madrid to allow him to move to London, with the transfer window due to close in just over 24 hours.

"The situation has not changed. I want to leave Real and play for Chelsea. I am only thinking of Chelsea and want to play there," Robinho told a chaotic news conference in Madrid.

"Since May I have been trying to renew my contract but they didn't want to know because they were so sure of signing Cristiano Ronaldo. Now they haven't signed anyone they don't want me to go."

Robinho has watched Real's last two matches from the sidelines and was left out of coach Bernd Schuster's squad for the Primera Liga opener away to Deportivo Coruna later today.

Schuster said the player was not in the right frame of mind to represent the club with his future still up in the air but that he would be delighted to take the player back if the proposed move fell through.

Manchester City, meanwhile, have signed Argentina defender Pablo Zabaleta from Spanish side Espanyol for an undisclosed fee, the club confirmed today.

The 23-year-old full-back has signed a five-year deal at the club after passing a medical at Eastlands. Zabaleta was part of the Argentina squad that recently won gold at the Olympic Games in Beijing.

Zabaleta becomes City's fifth signing of the summer following the arrivals of Jo, Tal Ben Haim, Vincent Kompany and Shaun Wright-Phillips.