Eddie Howe is one of the favourites to replace Michael Carrick

Manchester United would reportedly need to pay Premier League rivals Newcastle United 'significant' compensation to bring in Eddie Howe as Michael Carrick's replacement. That's according to Chronicle Live, following a closer examination of Howe's exit from St. James' Park earlier this summer.

Newcastle were reluctant to lose Howe when he informed the board of his desire to leave back in July, but ultimately respected his decision to stand down after five years in charge.

Reports suggest Howe features on a two-man shortlist at Manchester United alongside former Germany boss Julian Nagelsmann.

Should Michael Carrick depart Old Trafford, Howe is understood to be open to taking charge at United - though it may not prove entirely straightforward for the Red Devils.

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Chronicle Live reports that were Howe to switch to their Premier League rivals, United would need to stump up compensation to Newcastle.

A "significant pay-out" is expected to be due to Newcastle, considering that Howe had several years left on his contract, with talkSPORT claiming that figure stands at around the £3million mark.

Howe was earning roughly £6m per year at Newcastle and was bound to a multi-year deal that was extended in summer 2024.

The potential settlement could see millions pour into Newcastle's accounts, especially given that the club also agreed to release backroom staff members Jason Tindall, Stephen Purches and Simon Weatherstone alongside him, amid rumours that the group could return to management together.

Newcastle's statement in August read: "Newcastle United can announce that Eddie Howe has informed the club of his decision to step down as head coach.

"The club has accepted Eddie's decision and would like to thank him for his extraordinary contribution.

"Also leaving the club are coaches Jason Tindall, Graeme Jones, Stephen Purches and Simon Weatherstone, and head of performance Dan Hodges."

For now, Carrick is expected to be afforded the opportunity to turn fortunes around at Manchester United, and will take his place in the dugout for this weekend's fixture against Chelsea at Stamford Bridge.