The Newcastle Knights board has given an in-principle approval of Nathan Tinkler's $100 million offer to buy the club.

A club spokesperson confirmed that a funded patrons model had also been tabled at the board meeting on Wednesday night but was rejected in favour of the millionaire magnate's plan.

Chairman Rob Tew said the board would put Tinkler's buyout plan to members by March as time was needed to sort through a number of other issues.

Tinkler's offer guarantees the club at least $10 million a year in sponsorship revenue for the next 10 years and wipes out its estimated $4 million debt.

Just two months ago, Knights chairman Tew rejected a $10m offer from Tinkler for the licence but he substantially increased that amount and won the board over.

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