Money man: Nathan Tinkler has had the Jets on the market for five months. Photo: Ben Rushton

Newcastle Jets are understood to be in takeover talks with Scottish Premier League club Dundee United.

Known as the Tangerines, Dundee United are owned by the Thompson family, who operated a retail chain in Scotland and have an estimated wealth of more that $50million.

Stephen Thompson, who took over as chairman from his late father Eddie in 2008, has improved Dundee United's fortunes  – on and off the field –  dramatically and is understood to be interested in investing in the A-League.

A well-informed source told the Fairfax Media that talks with the Jets were advanced but Thompson had baulked at the $5million asking price.

Advertisement

"They know the numbers and are conducting due diligence," the source said.

Fairfax Media understands a third party not from the Jets is involved in the negotiations.

Thompson is also believed to have held talks with the Adelaide United consortium, who are seeking investment.

The Jets have previously held preliminary discussions with English Premier League namesake Newcastle United, who are owned by sports retail billionaire Mike Ashley.

It has been nearly five months since owner Nathan Tinkler put the Jets on the market declaring he "can't wait to get them out the door".

The Singapore-based mining tycoon, who relinquished control of the NRL club Newcastle Knights in June and also ceased his Patinack Farm racing operation, has cut costs significantly at the A-League club.

Jets chief executive Robbie Middleby, assistant coach Michael Bridges and former Hunter Sports Group chief executive Troy Palmer conducted a sales mission to the United Kingdom in September, however, Dundee United are not believed to be one of the clubs they visited.

The transfer of an A-League license is subject to Football Federation Australia approval.

Melbourne Heart (now Melbourne City) and Western Sydney Wanderers have changed hands in the past 12 months with both involving lengthy processes.

The Thompson family have a long association with Dundee United going back to the 1980s and assumed control in September 2002.

Stephen was appointed chief executive in 2008 and succeeded his father as chairman later that year when he died after a battle with cancer.

He has served as a director on the Scottish Premier League and in February announced that the club had cleared its debt to the bank. In September, Thompson knocked back an approach to buy the club.

Dundee United won the Scottish Cup in 2010 and are currently third on the Scottish Premier League table, three points behind leaders Celtic.