Newcastle have decided to end their pursuit of Marc Guehi as negotiations with Crystal Palace have become too difficult to continue.
Newcastle have offered a club-record £65m plus £5m in add-ons for the England international, but Palace owner Steve Parish has so far refused to accept.
Palace have remained firm on their valuation and did not want to lose their captain as they look to strengthen their squad.
With time running out in the transfer window, Newcastle are set to walk away without their No 1 target.
Newcastle have had multiple bids turned down for the 24-year-old in recent weeks, with the last rejection of £60m plus £5m.
TrendingThe increased £70m package has remained on the table, but those involved in the deal believe that Parish does not want to sell despite Guehi having two years left on his contract.
It's unclear if Newcastle will look elsewhere for another defender, but Eddie Howe had his heart set on Guehi.
Meanwhile, Maxence Lacroix is flying into the UK today to have a medical with Crystal Palace.
The Eagles have agreed a £21m deal with Wolfsburg to sign the centre-back.
Palace will pay an initial £18m for the Frenchman, plus £3m in add-ons.
The 24-year-old is being brought in as a replacement for Joachim Andersen, who joined Fulham last week.