The Daily Mail journalist Craig Hope has revealed that there is 'confidence' among some figures at Newcastle United that they can agree a deal to sign Joao Pedro.

The Lowdown: Bid rejected

It was reported earlier this week that the St. James' Park outfit had a £20m bid rejected from Watford for Pedro, with a new striker seen as a priority in the North East.

Callum Wilson is susceptible to injuries, while Chris Wood has only managed to score twice since arriving from Burnley in the January transfer window.

The Latest: 'Confidence' of deal

Taking to Twitter, Hope has revealed that there is 'confidence' among some on Tyneside that a deal can be agreed to sign Pedro this week, and that they are expected to return with an improved offer:

"Understand Newcastle are returning with improved offer for Watford’s Joao Pedro after £20m bid was rejected. Still said to be way short of Watford’s £35m valuation, but there is confidence among some a compromise will be agreed this week."

The Verdict: Don't go too high

Of course, every club must hold a lofty valuation for their own players, but the Magpies cannot give in to Watford's £35m price tag for Pedro.

As the transfer window draws to a close, the player himself may become more desperate to leave the Championship for the Premier League, and the Hornets will certainly not want to keep an unhappy player at the club.

Hailed as a potential 'excellent signing' by iNews journalist Mark Douglas, the Brazilian striker is already off the mark this season, making it a total of 14 goals for Watford over the last three campaigns, but has not yet proven to be prolific enough to warrant splashing £35m on.

He is only 20 years of age and has a lot of potential though, so perhaps a deal around the £30m mark would suit all parties.