The 32-year-old ex-England international won't be offered a new deal by Manchester United and his next move could be to the Emirates with Al Shabab reviving their interest
The Dubai club had revealed on Twitter earlier in the week they were interested in the 32-year-old former England striker, but later claimed the injury-plagued forward physically didn't correspond with the club.
However, executive director Saeed Al Marri told reporters on Saturday that talks with Owen, who hasn't been offered a new deal by Manchester United, were ongoing but ultimately the final call would come down to new Brazilian coach Marcos Paqueta.
"Right now, negotiations have reached an advanced level with the foreign players we hope to sign, and maybe in a week's time we will make everything clear," Al Marri said.
"The board has a few more things to discuss and then we will make a decision based on which player is best for us who will fit into the kind of scheme the new coach Marcos Paqueta has for the club."
Al Marri continued: “Owen has been offered to Shabab and some other clubs in the UAE, and we (directors) sat down today to discuss a lot of things. He is an option for us, but this deal will go through in two-three stages.
“We have to see what he can do for us and whether he can help us and then evaluate how much he will cost us and whether he is worth the money. We have been discussing his issue and the issue of the other foreign players.”
Al Shabab finished third in the UAE Pro-League last term and will compete in the 2013 AFC Champions League.