Newcastle have attempted to mitigate the blow of losing Dan Ashworth to Manchester United by appointing Paul Mitchell as their new sporting director. Mitchell most recently occupied the equivalent role at Monaco and, before that, held senior executive positions at RB Leipzig, Tottenham and Southampton, specialising in recruitment.

The 42-year-old initially moved into scouting when his playing career was ended by injury at the age of 27 and now fills the void left at St James’ Park when Ashworth was placed on gardening leave in February.

Related: Dan Ashworth free to start at Manchester United after Newcastle deal struck

Newcastle and Manchester United haggled over compensation for the former FA technical director but, with that issue finally resolved last weekend and Ashworth now employed at Old Trafford, Mitchell’s appointment has been green-lighted.

It is believed he will have a greater focus on recruitment than Ashworth, who held a broader brief at the club, but will still be involved in assorted spheres, including the women’s team.

Mitchell joins at a moment when Newcastle have narrowly staved off fears of a potential points deduction for possible breaches of profit and sustainability rules (PSR) by selling Yankuba Minteh and Elliot Anderson to Brighton and Nottingham Forest respectively for an initial sum in the region of £60m last weekend. It is understood that reaching a settlement with United also helped to balance the books.

With a new PSRcycle having begun this week, Newcastle are now expected to re-stock the playing squad and Mitchell will play a key role in doing so. “I’ve seen the recent growth and ambition of the club,” he said. “This, plus the amazing fanbase, made the decision to join an easy one. I can’t wait to help continue the organisation’s growth and long-term competitiveness in all areas of elite football performance.”

Darren Eales, Newcastle’s chief executive and another former Tottenham employee, said: “Paul’s extensive and diverse experience in football leadership, cultural change and recruitment mean he is the ideal person to lead our sporting directorate.”

Newcastle are expected to be without their midfielder Lewis Miley until October after the 18-year-old sustained a freak foot injury in training. Miley shone after breaking into the first team last season but injured his back while on international duty with the England Under-20s in March and had returned to his club early in order to accelerate a planned return to full fitness. Instead he is now scheduled to undergo surgery on Monday before a three month layoff.