Newcastle United: Rafael Benitez 'can have every last penny' to build - Mike Ashley

Rafael Benitez signed a three-year contract with Newcastle in May 2016

Newcastle United manager Rafael Benitez can expect up to £100m to spend on new players following "positive" discussions with owner Mike Ashley.

Benitez guided the Magpies back to the Premier League at the first attempt.

However, he was seeking assurances that he would be able to strengthen his squad again after the club's promotion.

In a club statement, Ashley said Benitez and managing director Lee Charnley can have "every last penny the club generates" to build for next term.

Benitez added: "I'm pleased with how the meeting went and the positive approach we are all taking together to build on what we have started this season.

"There will be challenges ahead of course, the summer will not be easy, but the hard work has been going on for some time and we can now continue positively with the development of the squad ahead of the start of the new season."

Former Liverpool, Chelsea and Real Madrid manager Benitez signed a three-year contract to remain at Newcastle in May 2016, despite the club dropping into the second tier, and the Spaniard led them to the Championship title on Sunday.

More than £50m was spent on new players last summer as Newcastle assembled one of the most expensive squads in Championship history, although almost £70m was recouped from player sales.

However, Benitez did not make any further additions to his squad in January and there were reports that the 57-year-old was considering his future at the club.