Saudi Arabia's sovereign wealth fund PIF is in talks with investors over them taking a minority stake in Newcastle United as part of its fundraising plans for the Premier League club's stadium, three people familiar with the matter said.

PIF, chaired by Saudi Crown Prince Mohammed bin ​Salman, is weighing up expanding the club's current stadium or building a new one and could issue new shares to a prospective new backer of the plans, one of the people said.

Newcastle United CEO David Hopkinson told Reuters that the club was considering building a new stadium, while a renovation would cost in the hundreds of millions of pounds.

A new stadium could cost in excess of 1 billion pounds ($1.34 billion), said Hopkinson, who referred questions about the talks involving PIF to the Saudi fund itself.

Saudi Arabia's PIF declined to comment.