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Newcastle United chairman Freddy Shepherd has agreed to sell his 28 per cent stake in the club to businessman Mike Ashley.

Shepherd follows majority shareholder Sir John Hall and his family in relinquishing his stake in the club after Ashley, a sports retail magnate, first announced his intention to buy the Magpies.

Operating under the banner of St James' Holdings (SJHL), Ashley has made a comprehensive offer valuing the club at over £133 million and now Shepherd has given his backing to the move.

"The time since Newcastle's flotation in 1997 has seen a radical transformation in the club and its fortunes, with the club now being one of the 20 wealthiest clubs in Europe with one of the finest stadiums in European football, a premier league participant and a regular participant in European Uefa competitions with a fantastic fan base," Shepherd said.

"The offer from SJHL is at a level which fully reflects both the performance of Newcastle and its prospects and ambitions for the future.

"The board believes that SJHL and Mike Ashley will be excellent custodians of Newcastle United's heritage and will provide the best possible opportunity for the club to flourish in the future, to the benefit of the company and its fans."

Sir John sold his 41 per cent stake to Ashley last month for over £55 million and Shepherd's holding is valued at £37.6 million.

Ashley, who owns popular sports brands such as Lonsdale and Dunlop Slazenger, hopes to complete the takeover during the summer in order to begin planning for the new football season, which starts in mid-August under the guidance of new manager Sam Allardyce.