Newcastle chairman Brian McGuigan believes Nathan Brown's success in Super League with St Helens and his commitment to "the Newcastle way" made him the ideal coach to steer the Knights to the premiership next season.

Brown is set to be officially unveiled as Newcastle coach next week but McGuigan announced on Thursday that the former St George Illawarra mentor would take over the role from caretaker coach Danny Buderus next year.

"It is going to be Nathan Brown, we have got to complete all of the technicalities of a contract yet but the board has spoken to many people and he has come out as the favourite because of his experience and having won premierships in the United Kingdom and the fact that he is so keen to do the job," McGuigan told ABC radio.

"We find him a very worthwhile candidate and one that is committed to 'the Newcastle way', and he is keen to come to Newcastle, his family is keen to come to Newcastle and so he is at the time in his career where we have got a great deal of faith in his capacity."

The Newcastle way is a mission statement that outlines the culture of the Knights and the way the team is expected to play, which was developed by chief executive Matt Gidley and fellow Newcastle great after Nathan Tinkler relinquished ownership of the club last year.

A sub-committee chaired by John Quayle and comprising of Gidley, Mark Fitzgibbon and Philip Gardner recommended to the Knights board on Thursday morning that Brown be appointed as head coach following the sacking of Rick Stone five weeks ago.

The Knights plan to make an official announcement after the board reviews the recommendation next week.

"We intended and we still intend to do an introduction to him next week some time," McGuigan said of Brown's appointment.

"I want fans to know that this is the case, that is the truth and we are very proud of this man as we were proud of Danny. Danny did a fantastic job, we were keen to talk to Danny about taking it on but he felt he needed a bit more experience so God willing he will still be there helping us to the first premiership in a long time."

Brown coached the Dragons for six seasons from 2003  before moving to England where he coached Huddersfield and St Helens, winning the 2014 Super League premiership with the Saints.

After returning to Australia this year, he has been working as a consultant for Craig Bellamy at the Melbourne Storm and was a member of the NSW Origin coaching staff.

"He will be our coach for the future and he has great credentials," McGuigan said.

"He led St Helens to one or two premierships whilst he was in the United Kingdom which has added to the complexity of his experience, but more particularly he really loves Newcastle.

"We have to make sure that we do our best as a board to put together a winning team. He promised me a premiership within a couple of years, so that's all I can ask."

South Sydney coach Michael Maguire had been targeted by the Knights but ruled himself out of contention earlier this week and intends to serve out the remaining two years of his contract with the Rabbitohs.

"I think I shouldn't confirm that or not but can I say we were really pleased and surprised at the calibre of applicants that we had for the job and the number of them, which gives us a lot of confidence for the future because it must be an observation within the football fraternity that Newcastle has turned the corner and we are heading into a new era," McGuigan said.