The Kingdom of Saudi Arabia's (KSA) Public Investment Fund (PIF) are expected to miss out on the signing of Matheus Franca for Newcastle United.

The Lowdown: Talks held

It has been reported that Newcastle have held continuous talks with Flamengo over Franca's potential signing, following claims that they had an official bid rejected for the Brazilian talent.

It is no secret that the St. James' Park outfit have been trying to pursue a deal for Everton's Anthony Gordon as well, so they could be very busy in the last few days of the transfer window.

The Latest: Franca unlikely

Writing in The Chronicle, Newcastle journalist Aaron Stokes says that the North East club are 'expected to miss out' on the signing of Franca, after submitting a 'number' of bids for the 18-year-old.

However, Flamengo are demanding a transfer fee in excess of £20m and a 'significant' sell-on clause, thought to be between 40-50%.

At the moment, the Tynesiders are not prepared to go that high, meaning that the deal is in stalemate.

[web_stories_embed url="https://www.footballtransfertavern.com/web-stories/newcastle-news-7/" title="Newcastle news!" poster="" width="360" height="600" align="none"]

The Verdict: Gordon the focus now

The fact that Eddie Howe's side look set to miss out on Franca means that they can focus all of their attention on trying to get a deal for Gordon over the line.

That is not to say that they should not revisit a deal for the Brazilian though, who is an exciting prospect having already played 29 games for Flamengo by the age of 18, scoring seven times (Transfermarkt), and has won the Copa do Brasil and Copa Libertadores.

Franca has been courted by the likes of Manchester City and Real Madrid as well, so is clearly highly-rated in Europe, and so it would be a shame for the Magpies to miss out on him at this stage.