Newcastle test Leeds' resolve with Smith bid

Newcastle United have tabled a bid of £5m in instalments for Leeds United's Alan Smith, despite the Yorkshire club reiterating yesterday that their England striker is definitely not for sale.

Leeds need £5m to buy breathing space until the end of the season to find a solution to their financial crisis, but according to Leeds insiders, Newcastle's bid will be rejected for two reasons: Newcastle are offering only £3.5m up front, which would be insufficient on its own to stave off Leeds' problems, and more significantly, the Leeds chief executive, Trevor Birch, has decided there are more palatable ways to raise cash. Smith, 23, is not only a fans' icon but offers one of their best on-field hopes of avoiding relegation.

The upshot is that if Leeds, who have debts of £83m, want to avoid administration, they have only two choices left. They must either sell other players this month or persuade their squad to take a pay deferral of around 30 per cent. All other options of raising finance in the short term have come to nothing. Birch favours wage deferral while the players would rather the club made sales.

There are pressures on both sides to cede ground, but two statements issued by Leeds yesterday indicate which way the wind is blowing. One denied Smith would leave but tellingly failed to deny anyone else would. Leeds have been offered £5m by Tottenham Hotspur for the goalkeeper Paul Robinson and the midfielder James Milner, and a deal seems increasingly likely, even though Birch is holding out for £10m.

The second statement, released by the players, said they were "fully behind" the club. But it stopped short of agreeing to a wage deferral, using only the vague promise that "we will be prepared to support the club, should it be required". It also said: "We wish to make it clear that we are fully behind the club and are working with Trevor Birch and the Professional Footballers' Association in the hope of solving the problems. We are together as a team and no decision has yet been made ... on whether to defer a percentage of our wages."

The players were criticised by fans for backing away from a wage deferral earlier in the week and yesterday's statement seemed to be more of a PR exercise than anything. After taking advice from the PFA, they are adamant their salaries need not be deferred. They know Birch is under greater pressure than they are.

In an attempt to cut costs and save Leeds from administration next Monday, when the "standstill agreement" with creditors expires, Birch yesterday tried to terminate the contracts of Zoumana Camara and Didier Domi, but the pair refused to allow Leeds to cancel their season-long deals from Lens and Paris St-Germain. Their agent, Willie Mackay, said: "There was no negotiating. The hammer simply came down from Trevor Birch. Under his instructions, he sent in [the caretaker manager] Eddie Gray and secretary Ian Silvester to ask them to sign these papers releasing them from their contracts. They refused..."

It is likely Camara will leave Leeds anyway, with the Bolton Wanderers' manager, Sam Allardyce, planning to speak to the French defender today about a loan deal.

Mackay intensified Birch's problems by announcing that two more of his clients, Lamine Sakho and Salomon Olembé, are to leave Elland Road before the close of the transfer window.

Gray had been hoping to retain the two summer loan signings from Marseille, who are on African Nations Cup duty with Senegal and Cameroon. They have both been Leeds regulars. But Mackay has negotiated transfers for them when they return, with Olembé poised to join Blackburn Rovers and Sakho another - as yet unnamed - Premiership club.

Another loan player definitely leaving Leeds is Roque Junior. Milan's Brazilian defender yesterday agreed to have his contract terminated and is considering offers.