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                                                                    EXHIBIT 10.3

                             THE McCLATCHY COMPANY

                           2001 DIRECTOR OPTION PLAN

     1.   Purposes of the Plan.  The purposes of this 2001 Director Option Plan
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are to attract and retain the best available personnel for service as Non-
employee Directors (as defined herein) of the Company, to provide additional
incentive to the Non-employee Directors of the Company to serve as Directors,
and to encourage their continued service on the Board.

          All Options granted hereunder shall be nonstatutory stock options.

     2.   Definitions.  As used herein, the following definitions shall apply:
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          (a)  "Board" means the Board of Directors of the Company.
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          (b)  "Change of Control" means (i) the sale, lease, conveyance or
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other disposition of all or substantially all of the Company's assets to any
"person" (as such term is used in Section 13(d) of the Securities Exchange Act
of 1934, as amended), entity or group of persons acting in concert; (ii) any
"person" or group of persons (other than any member of the McClatchy/Maloney
family or any entity or group controlled by one or more members of the
McClatchy/Maloney family) becoming the "beneficial owner" (as defined in Rule
13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company's
then outstanding voting securities; (iii) a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation that
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or its
controlling entity) at least 50% of the total voting power represented by the
voting securities of the Company or such surviving entity (or its controlling
entity) outstanding immediately after such merger or consolidation; (iv) a
contest for the election or removal of members of the Board that results in the
removal from the Board of at least 50% of the incumbent members of the Board, or
(v) the occurrence of a "Rule 13e-3 transaction" as such term is defined in Rule
13e-3 promulgated under the Securities Exchange Act of 1934, as amended, or any
similar successor rule.

          (c)  "Code" means the Internal Revenue Code of 1986, as amended.
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          (d)  "Common Stock" means the Class A Common Stock of the Company.
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          (e)  "Company" means The McClatchy Company, a Delaware corporation.
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          (f)  "Director" means a member of the Board.
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          (g)  "Disability" means that an Optionee is unable to engage in any
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substantial gainful activity by reason of any medically determinable physical or
mental impairment which has
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lasted, or can be expected to last, for a continuous period of not less than six
(6) months or which can be expected to result in death.

          (h)  "Employee" means any person, including officers and Directors,
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employed by the Company or any Parent or Subsidiary of the Company. The payment
of a Director's fee by the Company shall not be sufficient in and of itself to
constitute "employment" by the Company.

          (i)  "Exchange Act" means the Securities Exchange Act of 1934, as
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amended.

          (j)  "Fair Market Value" means, as of any date, the value of Common
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Stock determined as follows:

                (i)   If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination as reported in
The Wall Street Journal or such other source as the Administrator deems
reliable;

                (ii)  If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable; or

                (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board.

          (k)  "Non-employee Director" means a Director who is not an Employee.
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          (l)  "Option" means a stock option granted pursuant to the Plan.
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          (m)  "Optioned Stock" means the Common Stock subject to an Option.
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          (n)  "Optionee" means a Director who holds an Option.
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          (o)  "Parent" means a "parent corporation," whether now or hereafter
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existing, as defined in Section 424(e) of the Code.

          (p)  "Plan" means this 2001 Director Option Plan.
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          (q)  "Share" means a share of the Common Stock, as adjusted in
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accordance with Section 10 of the Plan.

          (r)  "Subsidiary" means a "subsidiary corporation," whether now or
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hereafter of existing, as defined in Section 424(f) of the Internal Revenue
Code 1986.

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     3.  Stock Subject to the Plan.  Subject to the provisions of Section 10 of
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the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 500,000 Shares (the "Pool").  The Shares may be authorized,
but unissued, or reacquired Common Stock.

         If an Option expires or becomes unexercisable without having been
exercised in full, the unpurchased Shares which were subject thereto shall
become available for future grant or sale under the Plan (unless the Plan has
terminated).  Shares that have actually been issued under the Plan shall not be
returned to the Plan and shall not become available for future distribution
under the Plan.

     4.  Administration and Grants of Options under the Plan.
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         (a)  Procedure for Grants.  All grants of Options to Non-employee
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Directors under this Plan shall be automatic and nondiscretionary and shall be
made strictly in accordance with the following provisions; provided, however,
that the Board shall have the authority to adjust the size of the Annual Option
(defined below) as it deems appropriate in light of all surrounding
circumstances:

              (i)   No person shall have any discretion to select which Non-
employee Directors shall be granted Options.

              (ii)  Each Non-employee Director shall be automatically granted an
Option to purchase 2,500 Shares (an "Annual Option") on the date of the
Company's annual stockholder meeting each year.

              (iii) Notwithstanding the provisions of subsections (ii) and (iii)
hereof, any exercise of an Option granted before the Company has obtained
shareholder approval of the Plan in accordance with Section 16 hereof shall be
conditioned upon obtaining such shareholder approval of the Plan in accordance
with Section 16 hereof.

              (iv)  The terms of an Annual Option granted hereunder shall be
as follows:

                    (A)  the term of the Annual Option shall be ten (10) years.

                    (B)  the Annual Option shall be exercisable only while the
Non-employee Director remains a Director of the Company, except as set forth in
Sections 8 and 10 hereof.

                    (C)  the exercise price per Share shall be 100% of the
Fair Market Value per Share on the date of grant of the Annual Option.

                    (D)  subject to Section 10 hereof, the Annual Option shall
become exercisable as to 25% of the Shares subject to the Annual Option on the
March 1 following its date of grant and 25% of the Shares subject to the Annual
Option shall vest on each March 1 thereafter, provided that the Optionee
continues to serve as a Director on such dates.

              (v)   Notwithstanding the foregoing vesting provisions, if an
Optionee's service as a Director terminates due to death, Disability or
retirement after attaining the age of 65,

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then 100% of the shares subject to each outstanding Option granted hereunder to
such Optionee shall immediately vest and become exercisable.

               (vi)  In the event that any Option granted under the Plan would
cause the number of Shares subject to outstanding Options plus the number of
Shares previously purchased under Options to exceed the Pool, then the remaining
Shares available for Option grant shall be granted under Options to the Non-
employee Directors on a pro rata basis. No further grants shall be made until
such time, if any, as additional Shares become available for grant under the
Plan through action of the Board or the shareholders to increase the number of
Shares which may be issued under the Plan or through cancellation or expiration
of Options previously granted hereunder.

     5.   Eligibility.  Options may be granted only to Non-employee Directors.
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All Options shall be automatically granted in accordance with the terms set
forth in Section 4 hereof.

          The Plan shall not confer upon any Optionee any right with respect to
continuation of service as a Director or nomination to serve as a Director, nor
shall it interfere in any way with any rights which the Director or the Company
may have to terminate the Director's relationship with the Company at any time.

     6.   Term of Plan.  The Plan shall become effective upon the earlier to
          ------------
occur of described in Section 16 of the Plan. It shall continue in effect for a
term of ten (10) years unless sooner terminated under Section 11 of the Plan.

     7.   Form of Consideration.  The consideration to be paid for the Shares
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to be issued upon exercise of an Option, including the method of payment, shall
consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of
Shares acquired upon exercise of an option, have been owned by the Optionee for
more than twelve (12) months on the date of surrender, and (y) have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of
the Shares as to which said Option shall be exercised, (iv) consideration
received by the Company under a cashless exercise program implemented by the
Company in connection with the Plan, or (v) any combination of the foregoing
methods of payment.

     8.   Exercise of Option.
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          (a)  Procedure for Exercise; Rights as a Shareholder. Any Option
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granted hereunder shall be exercisable at such times as are set forth in Section
4 hereof; provided, however, that no Options shall be exercisable until
shareholder approval of the Plan in accordance with Section 16 hereof has been
obtained.

               An Option may not be exercised for a fraction of a Share.

               An Option shall be deemed to be exercised when written notice of
such exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may consist of any consideration and

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method of payment allowable under Section 7 of the Plan. Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such Shares, no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. A share certificate for the number of Shares so acquired
shall be issued to the Optionee as soon as practicable after exercise of the
Option. No adjustment shall be made for a dividend or other right for which the
record date is prior to the date the stock certificate is issued, except as
provided in Section 10 of the Plan.

               Exercise of an Option in any manner shall result in a decrease in
the number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

          (b)  Termination of Continuous Status as a Director.  Subject to
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Section 10 hereof, in the event an Optionee's status as a Director terminates
(other than upon the Optionee's death, Disability or retirement after the age of
65), the Optionee may exercise his or her Option, but only within ninety (90)
days following the date of such termination, and only to the extent that the
Optionee was entitled to exercise it on the date of such termination (but in no
event later than the expiration of its ten (10) year term). To the extent that
the Optionee was not entitled to exercise an Option on the date of such
termination, and to the extent that the Optionee does not exercise such Option
(to the extent otherwise so entitled) within the time specified herein, the
Option shall terminate.

          (c)  Retirement.  In the event Optionee's status as a Director
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terminates as a result of Optionee retiring after attaining the age of 65, the
Optionee may exercise his or her Option, but only within three years following
the date of such termination, and only to the extent that the Optionee was
entitled to exercise it on the date of such termination (but in no event later
than the expiration of its ten (10) year term). To the extent that the Optionee
was not entitled to exercise an Option on the date of termination, or if he or
she does not exercise such Option (to the extent otherwise so entitled) within
the time specified herein, the Option shall terminate.

          (d)  Disability of Optionee.  In the event Optionee's status as a
               ----------------------
Director terminates as a result of Disability, the Optionee may exercise his or
her Option, but only within three years following the date of such termination,
and only to the extent that the Optionee was entitled to exercise it on the date
of such termination (but in no event later than the expiration of its ten (10)
year term). To the extent that the Optionee was not entitled to exercise an
Option on the date of termination, or if he or she does not exercise such Option
(to the extent otherwise so entitled) within the time specified herein, the
Option shall terminate.

          (e)  Death of Optionee.  In the event of an Optionee's death, the
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executors or administrators of the Optionee's estate or a person who acquired
the right to exercise the Option by bequest, inheritance or beneficiary
designation may exercise the Option, but only within three years following the
date of death, and only to the extent that the Optionee was entitled to exercise
it on the date of death (but in no event later than the expiration of its ten
(10) year term). To the extent that the Optionee was not entitled to exercise an
Option on the date of death, and to the extent that the

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Optionee's estate or a person who acquired the right to exercise such Option
does not exercise such Option (to the extent otherwise so entitled) within the
time specified herein, the Option shall terminate.

               In the event that an Optionee dies after the termination of his
or her status as a Director as provided in Sections 8(b), (c) and (d), but
before the expiration of his or her Option(s), all or part of such Option(s) may
be exercised (prior to the expiration) by the executors or administrators of the
Optionee's estate or by any person who has acquired such Option(s) directly from
him or her by bequest, inheritance or beneficiary designation under the Plan,
but only to the extent that such Option(s) had become exercisable before his or
her service as a Director terminated or became exercisable as a result of the
termination.

     9.   Non-Transferability of Options.  The Option may not be sold, pledged,
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assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

     10.  Adjustments Upon Changes in Capitalization, Dissolution, Merger or
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Asset Sale.
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          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
shareholders of the Company, the number of Shares covered by each outstanding
Option, the number of Shares which have been authorized for issuance under the
Plan but as to which no Options have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Option, as well as
the price per Share covered by each such outstanding Option, and the number of
Shares issuable pursuant to the automatic grant provisions of Section 4 hereof
shall be proportionately adjusted for any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of Shares
subject to an Option.

          (b)  Dissolution or Liquidation.  In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, to the extent that an Option has not
been previously exercised, it shall terminate immediately prior to the
consummation of such proposed action.

          (c)  Change of Control.  In the event of a Change of Control, all
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outstanding and unexpired Options shall become fully vested and exercisable,
including as to Shares for which it would not otherwise be exercisable.

               Outstanding Options may be assumed or equivalent options may be
substituted by the successor corporation or a Parent or Subsidiary thereof (the
"Successor Corporation") or they may be settled for cash.  If an Option is
assumed or substituted for, the Option or equivalent option shall continue to be
exercisable as provided in Section 4 hereof for so long as

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the Optionee serves as a Director or a director of the Successor Corporation.
Following such assumption or substitution, if the Optionee's status as a
Director or director of the Successor Corporation, as applicable, is terminated,
the Option or option shall remain exercisable in accordance with Sections 8(b)
through (e) above. If the Successor Corporation does not assume an outstanding
Option or substitute for it an equivalent option or the Option is not settled
for cash, the Board shall notify the Optionee at least thirty (30) days from the
date of such notice, and upon the expiration of such period the Option shall
terminate.

               For the purposes of this Section 10(c), an Option shall be
considered assumed if, following the Change of Control, the Option confers the
right to purchase or receive, for each Share of Optioned Stock immediately prior
to the Change of Control, the consideration (whether stock, cash, or other
securities or property) received in the Change of Control by holders of Common
Stock for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Shares). If such consideration
received in the Change of Control is not solely common stock of the Successor
Corporation or its Parent, the Board may, with the consent of the Successor
Corporation, provide for the consideration to be received upon the exercise of
the Option, for each Share of Optioned Stock, to be solely common stock of the
Successor Corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the Change of Control.

     11.  Amendment and Termination of the Plan.
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          (a)  Amendment and Termination.  The Board may at any time amend,
               -------------------------
alter, suspend, or discontinue the Plan, but no amendment, alteration,
suspension, or discontinuation shall be made which would impair the rights of
any Optionee under any grant theretofore made, without his or her consent. In
addition, to the extent necessary and desirable to comply with any applicable
law, regulation or stock exchange rule, the Company shall obtain shareholder
approval of any Plan amendment in such a manner and to such a degree as
required.

          (b)  Effect of Amendment or Termination.  Any such amendment or
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termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated.

     12.  Time of Granting Options.  The date of grant of an Option shall, for
          ------------------------
all purposes, be the date determined in accordance with Section 4 hereof.

     13.  Conditions Upon Issuance of Shares.  Shares shall not be issued
          ----------------------------------
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

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          As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares, if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

          Inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve
the Company of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained.

     14.  Reservation of Shares.  The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     15.  Option Agreement.  Options shall be evidenced by written option
          ----------------
agreements in such form as the Board shall approve.

     16.  Shareholder Approval.  The Plan shall be subject to approval by the
          --------------------
shareholders of the Company within twelve (12) months after the date the Plan is
adopted.  Such shareholder approval shall be obtained in the degree and manner
required under applicable state and federal law and any stock exchange rules.

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