Manager Harry Redknapp conceded that signing Paolo Di Canio represented a considerable gamble - but the controversial Italian is now proving the class act which could inspire Hammers into Europe for the first time in 18 years.

Di Canio's past history may be held against him but, at just £1.7 million, he could still be the bargain of the season and he simply mesmerised Newcastle as Hammers condemned them to a 2-0 defeat at Upton Park.

Having last weekend finally shaken hands with Paul Alcock, the referee he infamously pushed to the ground last year, and regained fitness after his enforced lay-off, Di Canio was back to his enigmatic best.

He scored West Ham's first, set up two other clear chances which were wasted by ex-Newcastle forward Paul Kitson but watched in satisfaction as his co-striker made no mistake with a late solo effort to clinch victory.

In contrast to the all-action Italian, Alan Shearer was a disconsolate figure up front for Newcastle, largely isolated and having to feed off meagre scraps of service which hardly bodes well for England's crucial Euro 2000 qualifier against Poland next week.

He was superbly marshalled by national team-mate Rio Ferdinand and found Neil Ruddock in a similarly uncompromising mood alongside him at the heart of the Hammers defence, while Shaka Hislop was also in fine form.

So West Ham, who secured an impressive 1-0 win at Chelsea last weekend, moved into fifth place in the table inspired from the start by Di Canio, who was absent at Stamford Bridge with a groin injury.

The Italian was immediately in the thick of the action at Upton Park, making the most of an apparently free role to roam at will.

One incisive cross left partner Kitson to head wastefully over the bar as he caused the Newcastle defence all sorts of problems with his mesmerising tricks and turns.

Just 16 minutes into the match he also showed his cool finishing as he capitalised on a mix-up in the visitors' defence as a clearance cannoned off a defender into the Italian's path.

The linesman signalled for offside but referee Paul Durkin ruled that the ball had come off a Newcastle player, so playing Di Canio onside. The striker set off towards goal, shimmied his way past advancing keeper Shay Given, and sidefooted the ball home.

Newcastle's best early chance came from a Shearer 20-yard free-kick, which was superbly tipped away by his former team-mate Hislop.

But all too often the England forward was left on his own up front, condemned to watch as his team-mates patently failed to give him the service he needs.

Indeed, Newcastle's only effective threat of the first half came from another dead-ball effort, which Gary Speed struck a foot wide of the left-hand upright.

West Ham were clearly in control at this stage and Di Canio should have punished Newcastle a second time only to mis-hit his shot after being left in the clear by Sinclair.

The visitors at least came out in a more determined mood for the second period and substitutes Rob Lee and Temuri Ketsbaia combined to leave the bald midfielder with a clear effort which he sent over the bar.

Hislop was also called on to produce his second save of the game to deny Nolberto Solano but Ferdinand and Ruddock were in assured form to deny the visitors.

For all their pressure, Newcastle remained vulnerable on the break and were almost caught out when Di Canio crossed for Kitson to head against the inside of the post and it ran agonisingly along the goal-line before Laurent Charvet cleared.

Kitson made no mistake, however, after 82 minutes as he ran onto Frank Lampard's long ball to shimmy his way past two defenders and plant his measured shot just inside the far post.

Teams

West Ham: Hislop, Pearce, Ferdinand, Ruddock, Sinclair, Lampard, Foe, Lomas, Minto, Di Canio, Kitson.

Subs Not Used: Forrest, Potts, Keller, Moncur, Berkovic.

Booked: Ruddock, Foe.

Goals: Di Canio 17, Kitson 82.

Newcastle: Given, Griffin, Dabizas, Charvet, Domi, Solano, Maric (Ketsbaia 58), Speed, Georgiadis (Lee 59), Saha, Shearer.

Subs Not Used: Harper, Barton, Hughes.

Att: 25,997

Ref: P Durkin (Portland).