Jesse Lingard was reportedly given permission by Ralf Rangnick to move to Newcastle on loan for the rest of the season before talks with Manchester United broke down.
Lingard is out of contract with United at the end of the season and has been strongly linked with a move away from Old Trafford this month.
The midfielder has made 14 appearances for United this season, but 12 of those have come off the substitutes' bench.
He has grown frustrated by the lack of opportunities and, after enjoying time on loan with West Ham last season, has pushed to be allowed to leave on loan.
According to the Daily Mail, Lingard held a productive one-to-one conversation with Rangnick on Tuesday in which the German boss granted his wish.
But just a day later it appears his temporary switch to St James’ Park could be at risk of collapse.
The problem is that United are asking for a sizeable loan fee for the 29-year-old midfielder, while also demanding that his £100,000-per-week wages be paid in full until the end of the season.
Despite no transfer fee being involved, signing Lingard on loan would reportedly cost Newcastle around £15million.
United believe that is a reasonable fee for the England international, who netted nine goals in 16 appearances for West Ham in the back end of last season.
But it appears as though the Magpies are playing hard ball in the final week of the January transfer window.
Newcastle will reportedly turn their attention to other targets as they try to strengthen their squad in a bid to avoid relegation from the Premier League.
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United have had interest from West Ham and Tottenham for Lingard, but are unwilling to do business with the London clubs due to their league positions.
West Ham are a point behind United in fifth, while Spurs are in seventh and have two games in hand on Rangnick’s side.
Everton have also shown interest in Lingard, but United are reluctant to entertain the Merseyside club because of strained relationships which stem from previous business.
The Old Trafford hierarchy are not a fan of Toffees owner Farhad Moshiri, who has previously pulled the plug on moves for Sergio Romero and Van de Beek at the last minute.
Newcastle’s continued interest in Lingard may fade due to their progress in trying to sign Lyon midfielder Bruno Guimaraes.
There are widespread reports that Newcastle are close to signing the Brazilian for a fee of £33.5m (€40m).
The 24-year-old is reportedly set to undergo a medical when he returns to Brazil from Ecuador, where he is currently on international duty.
Newcastle have already signed Kieran Trippier and Chris Wood this month, but have so far failed in their attempts to add a centre-back to Eddie Howe’s squad.
The Magpies, who are away doing warm weather training in Saudi Arabia, are 18th in the Premier League, a point adrift of safety, following their 1-0 win over Leeds United on Saturday.
