Newcastle United's hopes of signing Kalvin Phillips on loan this month are reportedly fading, with the Magpies not prepared to meet Manchester City's demands for the midfielder.
Phillips, 28, has only made 10 appearances for Man City this season, with just four of those coming in the Premier League, totalling just 89 minutes of action in England's top flight in 2023-24.
The Citizens are open to letting the England international leave during the January market, and a number of clubs, including Newcastle, continue to be linked with his services.
Eddie Howe's side have been hit with the news that Joelinton could miss the remainder of the season with a serious groin problem, with the club said to be preparing to revisit their transfer plans, having initially decided that there will be no mid-season arrivals.
However, according to The Telegraph, a deal for Phillips is currently off the table, as Newcastle are not willing to meet the demands which have been set out by Man City.
The report claims that the English champions want a £7m loan fee, while Man City want to include an obligation to buy the midfielder for £40m this summer.
Crystal Palace and West Ham United have also been linked with Phillips, and the midfielder is expected to leave the Etihad Stadium before the winter window closes.
Phillips needs regular action in the second half of the campaign to be sure of a spot in the England squad for the upcoming European Championship, and he is not in the plans of Man City boss Pep Guardiola.
Newcastle would allegedly be open to revisiting a deal later in the window, but the terms would need to change, with the club's ownership not prepared to accept Man City's demands, even after learning the seriousness of Joelinton's injury.
According to The Guardian, senior figures at Newcastle will meet later this week to discuss their plans for the remainder of the window.
A number of clubs were credited with an interest in Phillips when it became clear that he would be leaving Leeds United in the summer of 2022, but Man City won the race for his signature.
The Englishman has struggled to make his mark for the Citizens, only managing one goal in 31 appearances in all competitions, playing just 16 times for the club in the Premier League.
A loan exit this month is further complicated by Phillips's substantial wages, and he has a contract with the English champions until June 2028.
A recent report claimed that Tottenham Hotspur could also join the race in the latter stages of the transfer window if the North London club are unable to sign Chelsea's Conor Gallagher.
