Manchester City are willing to discuss a swap with Newcastle for Bruno Guimaraes.
The Daily Star says City are targeting Guimarães, but do not want to pay more than £80m for the Brazil midfielder.
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Newcastle, however, insist the star will only leave for £100m, with Arsenal also still in the picture.
City hope to convince Newcastle to lower the price tag by loaning one of their youngsters to them.
Rico Lewis, 19, and Oscar Bobb, 21, are of interest to Newcastle, but City refuse to sell them.
However, the English giants are said to be ready to release Lewis or Bobb to Newcastle on loan to break the deadlock in negotiations.