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Lee Ryder

Joao Pedro negotiations between Watford and Newcastle United continue with no fee agreed

Newcastle United's negotiations with Watford to sign Brazilian youngster Joao Pedro remain ongoing as the Hornets fight to hold on to the 20-year-old.

United are understood to have put in an initial bid earlier this week in the region of £20million and while there has been talk of a second bid, Newcastle are eager for Watford to name their price. The deal is complicated by the fact Watford must factor in Pedro's old club and their demand for a 10% cut of any sale.

So far Watford have strongly rejected Newcastle's approach for Pedro but the South American is keen on the idea of linking up with United's Brazilian duo Bruno Guimaraes and Joelinton. And whether Watford's resistance could yet prove to be transfer window brinksmanship with a fortnight of trading to go remains to be seen.

READ MORE: Newcastle United to tell Real Madrid to forget Bruno Guimaraes interest

Vicarage Road chief Rob Edwards said earlier today: "There has a been a bid in for Joao that’s been talked about. It’s not anywhere near the level that we’d expect it to be for him, but I’m involved in that conversation and if anything else was to come in again we’ll sit down and talk about it as a club and as a board."

Watford's outgoing business this summer includes Emmanuel Dennis who was sold to Nottingham Forest and former Newcastle midfielder Moussa Sissoko who departed after relegation for £1.8million. The Hornets have made a steady start to life back in the Championship and sit third after four games with two wins and two draws.

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