Newcastle's statement that they have agreed a club record fee in excess of £15m with Real Madrid is thought to be to show of intent rather than any serious ambition to land the player, who has after all clearly ruled out a permanent move to St James' Park.
Newcastle are desperate to land a new striker before the transfer window slams shut. After failing to land targets Nicolas Anelka and Luis Boa Morte, Graeme Souness then turned his sights to Deportivo La Coruna forward Albert Luque.
After their offer to the Spanish club for the 27-year-old was turned down that deal appeared to be dead. But it is thought this latest move for Owen is designed to try and force the forward and Deportivo into a rethink before next Wednesday's transfer deadline.
Now the ball is in Benitez's court amid mounting speculation he could seek to off-load Djibril Cisse in order to accommodate Owen in his squad.
Cisse, who cost Benitez's predecessor Gerard Houllier £14m last July, has already scored four goals in Europe this season but is believed to be the most expendable of the front men.
Owen scored 158 goals in 297 games for the Anfield club before leaving for Madrid last summer and would be welcomed back with open arms by Liverpool fans.
Owen's heart has always been set on returning to Anfield. He rejected the possibility of a move to Everton this week and also revealed he had held "brief dialogue with three or four Premiership clubs."
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