Kevin Keegan’s possible return to Southampton as manager raised as much scepticism as optimism last night when the club’s proposed new owners prepared to enter their final day of talks with the administrator.

Keegan is joined on the exalted shortlist by Alan Shearer, a fellow former player, Gordon Strachan, a former manager, and Alan Curbishley.

The former Newcastle United and England manager was photographed meeting Matthew Le Tissier, another revered former Southampton player, who fronts the Pinnacle Consortium, and and Leon Crouch, the club’s former chairman.

Some observers may believe that it all smacked of a public relations exercise as the group tries to reach agreement with Begbies Traynor, the administrator of Southampton Leisure Holdings plc, the club’s parent company. It went into administration in April with nearly £40 million of debt, had been unable to pay staff wages for March and was itself on the brink of insolvency. An announcement on the club’s future could be made this afternoon, including the name of the consortium’s mystery financial backer. Le Tissier has been earmarked as a possible chairman.

Times Archive, 1980: Keegan puts Southampton above Europe's riches

The Saints have achieved an astonishing coup

• The prodigal returns marching as a Saint

Related Links

• Southampton unable to pay wages

• Le Tissier rescues Southampton Football Club

Mark Wotte, the manager, admitted this week that the club were likely to appoint a replacement for him, but he hoped to stay on in another role. Keegan has been out of work since resigning from Newcastle United in September, since when he has pursued a compensation claim for about £8 million. Keegan has mounted a case of constructive dismissal because of the club’s transfer policy, which, it has been alleged, meant that he did not enjoy full control over personnel, despite assurances to the contrary.

Newcastle and Keegan have the power to reach a settlement before the case goes to a Premier League tribunal or, from there, to court. The protracted legal dispute should have no bearing on him taking the Southampton job. However, Keegan could be left with an expensive bill should he lose.

Keegan played for Southampton in the 1980s and has experience of managing in the third tier. He was appointed chief operating officer by Fulham in 1997 when they were in the third tier and Ray Wilkins was head coach. Keegan later took over as manager and won promotion in 1999, helped by a substantial transfer kitty. When Glenn Hoddle was sacked as England coach in 1999, Keegan combined the role of caretaker manager with his Fulham duties, but he was rapidly named Hoddle’s full-time successor.

Southampton supporters welcomed the prospect of Keegan returning. “Supporters would see it as a return of a prodigal son, and would put the club back in the headlines,” Nick Illingsworth, the chairman of The Saints Trust said. “The big question is, would the new regime put money back into the club? Because Keegan does not do things on the cheap. Kevin Keegan does bring life into the clubs that he goes to, though.”

Pinnacle will be able to pursue a managerial appointment if it is successful with its offer, which was based on a lower initial payment than a rival consortium, but with money to be paid on possible promotions, including to the Premier League. Pinnacle paid an exclusivity fee of about £500,000 that was non-refundable, with which the club could pay their wage bill, tiding it over until the middle of this month.

Southampton were relegated from the top flight in 2005 and to Coca-Cola League One last season. They were docked ten points by the Football League because their parent company went into administration. That penalty will come into effect next season. Should Pinnacle take over, the club are expected to launch a legal challenge against the penalty.