Former Newcastle owner Mike Ashley is considering a takeover bid for stricken Championship club Derby County.

Ashley is ready to make a dramatic late move to buy Derby, who are in administration, and is understood to have had discussions with Quantuma, the business advisory firm handling the club’s future.

Derby are facing the threat of liquidation with cash running out, and Quantuma announced on Christmas Eve that naming a preferred bidder was “imminent”, after American businessman Chris Kirchner pulled out of the running.

One of the remaining groups is fronted by former Wolves chief executive Jez Moxey, working on behalf of General Sports Worldwide, which includes former Derby chairman Andrew Appleby and former chief executive Sam Rush.

But they are now facing competition from Ashley and his party, with a decision expected later this month over who can proceed with exclusivity negotiations.

Ashley’s turbulent reign at Newcastle ended in October last year when he agreed a £300 million sale to a consortium including Saudi Arabia’s Public Investment Fund.

The chief executive officer of Frasers Group, the owners of Sports Direct, Ashley was an unpopular figure with Newcastle’s supporters during his 14-year tenure.

On Twitter, One Director singer and Derby fan Niall Horan reacted to the possibility of Ashley taking over, writing: “Please no!”