Sky Sports understands Manchester United have rejected a bid from Newcastle for teenage starlet Ravel Morrison.
Morrison seems set to leave Old Trafford after failing to agree a new deal with his current contract due to expire in the summer.
The Red Devils are thought to be open to the idea of offloading Morrison despite the fact the winger is regarded as one of the best players to emerge from their famed youth academy
A number of clubs at home and abroad have been alerted to Morrison's possible availability and Newcastle have tried to steal a march on their rivals by making an offer for the 18-year-old.
Even though Morrison could leave on a free transfer in the summer United would be entitled to compensation in the region of £300,000 for development costs as he is aged under 24.
Newcastle are thought to have made a bid in the region of the fee their rivals would be entitled to in compensation, but the Old Trafford side have rejected it out of hand.
Morrison, who has made two first-team appearances in the Carling Cup this season, is believed to be resigned to leaving as he wants to be playing regular first team-football.