Newcastle United have had a second bid rejected by Watford for young forward Joao Pedro, 90min understands, but talks between the two clubs are continuing.
Newcastle made their initial move worth £20m including add-ons earlier in the month. It was rejected, but the North East giants have returned with another bid.
The Magpies have now offered a deal worth £25m - again including add-ons - but Watford have turned them down as they want to get £35m for the Brazilian, who joined in January 2020 from Fluminense.
Sources have confirmed to 90min that talks are continuing between the two clubs, and Newcastle are hopeful Watford could be tempted by an offer close to £30m.
Watford would like to keep the 20-year-old, having already sold Emmanuel Dennis this summer, but Pedro is believed to be pushing for the move.
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Portuguese giants Benfica and Porto showed interest earlier in the summer, but Newcastle are pushing hard to seal a deal.
Newcastle only have Chris Wood as back-up to Callum Wilson and manager Eddie Howe wants additional options in attack to be brought in before the window shuts at the end of this month.