Watford have rejected a £17.5m bid from Newcastle United for forward Joao Pedro.
Sky Sports News understands Watford’s stance is the 20-year-old is not for sale.
Pedro has started all three of the club’s Championship games this season and scored the winner in the opening match against Sheffield United.
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Joao Pedro gives Watford the lead against Sheffield United
The Brazilian joined the Hornets from Fluminense in January 2020 as the club were relegated from the Premier League, but he scored nine goals in 38 appearances the following season as Watford secured automatic promotion.
However, last season, Watford were relegated again with Pedro scoring only three times in 28 league matches, contributing one assist.
Newcastle poised for Gallagher move
Newcastle would be among the clubs interested in Conor Gallagher if he becomes available from Chelsea before deadline day.
Gallagher has been involved in Thomas Tuchel’s first-team plans so far, coming off the bench in theirs Super Sunday draw with Tottenham.
But places in midfield may come at more of a premium if Chelsea are successful in their pursuit of Barcelona’s Frenkie de Jong, with Mason Mount and Jorginho in good form.
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FREE TO WATCH: Highlights from the 2-2 draw between Chelsea and Tottenham in the Premier League
Mateo Kovacic is also yet to return from injury and Ruben Loftus-Cheek, although deployed as a right midfielder against Tottenham, is also an option. N’Golo Kante did come off injured in Sunday’s London derby with a hamstring injury.
Strengthening in midfield has become more of a pressing issue for Newcastle after Jonjo Shelvey suffered a serious injury against Nottingham Forest on the opening day of the season.
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FREE TO WATCH: Highlights from the 0-0 draw between Brighton and Newcastle in the Premier League
Eddie Howe has been chasing James Maddison, but Leicester do not want to sell and have rejected multiple bids, so Gallagher could be seen as an attractive alternative target.
Newcastle have also been interested in Chelsea striker Armando Broja this summer – another player who may yet be allowed to leave Stamford Bridge on loan if they bring in another striker, such as Pierre-Emerick Aubameyang.
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Newcastle manager Eddie Howe says the club are currently no closer to signing any new players
So lines of communication are expected to remain open between the clubs between now and the deadline as the late flurry of activity potentially opens more doors for the Magpies.
Newcastle co-owner Amanda Staveley was a guest at Stamford Bridge on Sunday.
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