Newcastle United suffer fresh January transfer blow as midfielder D Day nears

Crystal Palace are understood to have edged ahead of Newcastle United in the race to sign Kalvin Phillips, NewcastleWorld understands.

Magpies' boss Eddie Howe is a keen admirer of the England international, who has been deemed surplus to requirements at Manchester City. But financial constraints have meant Newcastle have been unable to move for anyone so far this window, despite the dire need.

The latest blow to Howe's season comes with the news midfielder Joelinton could be out for the season, if his quad issue requires surgery. United are already without Sandro Tonali, Elliot Anderson and Joe Willock in that department.

Newcastle are close to the edge of allowable losses over a three-year period in relation to the Premier League's Profit and Sustainability Rules. As a result, funds are tight. Howe recently admitted: "In an ideal world, given the freedom to act we would have brought players in already.

"But we're not in that situation - as Darren Eales alluded to on Thursday, Financial Fair Play is a problem for us, and we're having to navigate round that.

"That's the position we're in. When does it become a problem? It's already one, but we're trying to manage through it."

And while Newcastle dither on a deal, Palace are believed to be ready to firm up their interest. Although, it's understood, City are yet to receive a firm, formalised offer for the player from either the Magpies or the Eagles.

That could, of course, all change as we head into the final weeks of the window. In fact, sources suggest that interest could be firmed up this week, leaving the player, who had previously shown a preference to join Newcastle, with a decision to make, especially with his place in Gareth Southgate's Euro 2024 squad at risk due to his lack of gametime at the Etihad this season.

Reports elsewhere had suggested Tottenham Hotspur were lining up a move for the player, but Phillips, at this stage, is not thought to be among Spurs' priorities.