Kevin Phillips insisted Matty Longstaff will be inspired to sign a Newcastle United contract extension by the prospective takeover.
The former England international, speaking exclusively to Football Insider correspondent Dylan Childs, suggested, if he was the 20-year-old, he would want to stay and compete even if the squad was overhauled.
Longstaff is out of contract on 30 June and despite club officials having begun negotiations with the youngster during lockdown, a breakthrough is yet to be made, Football Insider understands.
Newcastle would only receive a compensation fee for training costs if the young midfielder was to move clubs upon becoming a free agent.
The PCP Partners £300million takeover is still in the process of being ratified by the Premier League.
When asked by Football Insider if the central midfielder would be less inclined to sign a new deal amid such uncertainty, Phillips said: “I would have to put my player’s head on and I would want to stay.
“You can sense something brewing. If the takeover goes through you would be thinking quality players are going to come in and you would have the chance to play with them. You would want to challenge for a place in that team.
“I would be more inclined to stay, sign a deal and look forward to watching the club develop over the next four or five years.
“If they do what Manchester City did you will be staying at a club that will be challenging for things.”
The prospective new owners have hopes to replace Steve Bruce with a “world-beater” manager – Mauricio Pochettino topping the list of potential candidates.
In other Newcastle United news, Paul Robinson has told Football Insider Dutch 23-year-old would be “outstanding” signing.