Muhammed Ali was at ringside Saturday night at Caesar's Palace, and before Ken Norton and Jimmy Young squared off in a heavyweight bout, the champ shouted, ``As soon as we can, we're gonna negotiate. I'm ready for the winner.''

Ali better be ready. The World Boxing Council, one of two rival groups that rule boxing--made up of old fighters who were hit in the head too often--has decided that Ali must sign a contract to defend his title against Norton within 60 days or forfeit the crown.

Since Ali makes his own rules, that decree may be ignored. But time is still counting out the 35-year-old Ali, and Norton and Young are stalking the champ, ready to knock him off.

Norton outpointed Young in a 15-round split decision to gain the first shot at Ali. With hands held low, Norton pursued Young around the canvas, methodically pummeling Young's midsection.

This bullying attack convinced the judges to give Norton the nod in a verdict as tight as the waistband on Jerry Quarry's shorts. The three judges could give a fighter an edge in only six rounds they scored.

The body punching strategy was particularly effective for Norton in the last round, when he upped the tempo to impress the Las Vegas crowd.

This display was neither as effective nor as devestating as the one unleashed by Ali in his ferocious fifteenth round against Earnie Shavers in their September title bout. Yet the judges were convinced and Norton won the round.

But the judges still told the referee to raise the wrong arm at the end of the bout. Young should have been declared the victor and Norton the vanquished.

Young's unnerving counterpunches kept Norton off-balance and neutralized Norton's opportunities to land the big punch. In the middle rounds, Young staggered Norton with quick leads and right-left combinations.

Young continued to baffle Norton and the official winner rallied only by moving Young into the ropes.

From the gallery, Ali cheered for Young, but not out of brotherly love for the Philadelphia heavyweight. The champ wants no part of the 32-year-old Norton. Ali is haunted by his broken jaw at the hands of Norton and remembers the two disputed decisions over the challenger.

If the next Ali-Norton fight is close, Ali will not be the customary beneficiary of the automatic nod for the reigning champion. Norton will be the betting favorite and for once Ali will need to win decisively.

But the prognosticators of pugilism do not even rate the bout as a toss-up. Ali has never solved Norton's unorthodox style and an older and heavier Ali may be sent to sing with Joe Frazier after the fight.

Norton is one fighter who should have never troubled Ali. Ali has always should be nothing special for the champ. If history was not in Norton's corner, Ali would be expected to cunningly preserve his title.

Meanwhile, in a neutral corner, old is not Young. Young, at 28 years of age, is a serious contender and not the Cinderella story of ABC, whose portrayal of Young as Rocky Balboa makes as much sense as saying Duane Bobick is Rocky Marciano.

`Wuz Robbed'

Young ``wuz robbed'' of a decision against Ali over a year ago. They said Ali was out of shape. Cheered wildly by the locals of San Juan, ``Yimee'' Young outpointed George Foreman last spring. Again it was called a fluke: Foreman has brains like Kojak has hair.

Young is not an upstart. He is crafty, determined and unflappable. Saturday night, after Norton's arm was raised, Howard Cosell knew he would not get much of a reaction from Young.

Young did not have to comment. Norton, the victorious boxer in the middle of the ring, and Ali, the greatest champion of all time, could have said it. One of them will occupy the throne for a while, but Jimmy Young is going to get that crown.