Newcastle United chairman Freddy Shepherd is prepared to take legal action to ensure the club is adequately compensated for Michael Owen's knee injury.

The striker will not play again before the end of the year after rupturing the anterior cruciate ligament in his right knee during England's World Cup clash with Sweden.

Shepherd is disappointed with the level of compensation on offer from the Football Association for Owen, with reports suggesting the governing body took out additional insurance cover for Wayne Rooney adding to his anger.

He told the club's official website: "If reports are true that the Football Association paid to take out extra cover for Wayne Rooney above and beyond what they would do for other players during the World Cup Finals then I find that wrong.

"I make it quite clear this is not an issue with Manchester United, it's solely with the FA.

"If they were prepared to do that for one player then they should have come out in the open and told the other clubs who have players representing England at World Cup.

"The FA should not discriminate when it comes to things like this. It should be one rule for all players and all clubs.

"In this case it is Newcastle United who now have to pick up the pieces. Michael is our record signing and he went to Germany as the leading goalscorer in the England squad, so we have every right to feel aggrieved that he returns to us injured and without adequate compensation paid to us.

"The World Cup generates millions of pounds in revenue for FIFA and the associations and we should be adequately compensated.

"That's our position and we have today instructed our lawyers to take this forward."