Rafa Benitez met Newcastle United managing director Lee Charnley on Thursday for initial talks over the Spaniard's future, according to Sky sources.
We also understand Benitez is seeking assurances from the club hierarchy, including having full control of transfers.
Less than 24 hours after United were condemned to life in the Championship by Sunderland's 3-0 win over Everton, Benitez sat down with Charnley at the club's Darsley Park training ground.
It is understood the three-year contract Benitez signed in March included a release clause should he not manage to preserve the club's top-flight status.
A supporters group, the Newcastle Fans' Forum, have issued a direct plea to the former Liverpool and Real Madrid boss urging him to stay on Tyneside as he prepares for the final match of the season, Tottenham's visit to St James' Park on Sunday.
A statement read: "Message to Rafa Benitez - whilst we fully accept that the short term prospect of life in the Championship may not be as appealing as other offers that you may be presented with, we can certainly promise you that the potential rewards of the longer term would exceed any position that you consider."
The current squad is likely to be shaken-up markedly in the wake of relegation but club officials are adamant that they will decide who stays and who goes - and not the players themselves.