The hope of signing Jesse Lingard is almost over.
One source told Sky Sports News that the deal is dead because of the differences between the valuation of the two teams.
The England international was on the verge of joining the club before the end of the January transfer window, but they were prepared to pay a fee for him as well as his full wages.
Lingard wanted to go somewhere where he could play regular football and not be stuck at Old United.
They are expected to look elsewhere for reinforcements.
Lingard can leave for free in the summer if he wants to, and he won't stay at Old United beyond this season.
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If Sevilla offers 45 million dollars for the centre-back, then it will be possible for Newcastle to sign Diego Carlos.
Sky Sports News reported last week that Carlos would like to move to Newcastle but the club are unwilling to pay more than 30 million dollars.
Sevilla, who are currently second in La Liga and chasing their first title in 75 years, offered to almost double Carlos' wages to match what he is being offered by Newcastle.
Sevilla think it's a fair price for a world-class defender who's been watched by Real Madrid, Manchester United, Spurs and the like.
If Chris Wood were to be purchased by the club for 25 million dollars, then it would be a fair price for Carlos.
It is thought that the player would be available for around 30 million dollars, but that Sevilla will continue to stall. They are now looking for defensive reinforcements elsewhere.
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Carlos is aware that time is running out to complete a deal with Sevilla and he is still hoping that they can agree on terms.
He told Sevilla last week that he wanted to move to Newcastle, but also that his club will not let him go unless their valuation is met.
The transfer window will not be used to take advantage of the financial resources of the club.
A player swap is believed to have been part of the proposed deal for Carlos.
Who will be moving in January?
The January transfer window closes at 11pm on Monday January 31.
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