The Manchester club have unintentionally derailed the Magpies’ pursuit of Lille forward Matias Fernandez-Pardo, according to reports.
Newcastle had been in negotiations over a fee with the Ligue 1 outfit for the Belgian international forward, but the club may now go in a different direction after failing to agree.
The high-profile transaction between Manchester City and Lille, which sees Ayyoub Bouaddi join Enzo Maresca's side, has altered the negotiating landscape.
Manchester City land Ayyoub Bouaddi but deal has consequences
Man City’s £81 million purchase of the teenage midfielder has deposited a massive windfall of cash into Lille's accounts, transforming the French club's balance sheet.
Before Man City’s intervention, Lille were - as is the case with huge swathes of French football - operating under pressure to balance their books.
This would have made structuring a deal for Fernandez-Pardo achievable for Newcastle, however, that financial leverage has now vanished.
With their coffers overflowing from the Bouaddi deal, Lille no longer need to sell for economic reasons. Consequently, the French side have been able to play hardball in talks, holding out for a steep asking price that far exceeds what Newcastle are willing to pay.
Therefore, with Newcastle unwilling to overpay in an inflated market, the Magpies have reached a roadblock in negotiations, according to reports on the continent.
The setback occurs while Newcastle and Manchester City remain engaged in direct business elsewhere.
Newcastle are finalising a reported £50 million transfer for Man City midfielder Nico Gonzalez, which will reinforce Matthias Jaissle's options in the middle of the park.
