NEWCASTLE are preparing to increase their bid for Watford striker Joao Pedro.
The Championship club insist the Magpies' initial £20million bid is nowhere near their valuation.
Hornets boss Rob Edwards has hinted they are ready to sell Pedro with him rated at around £35million.
Newcastle saw an opening move for the 20-year-old rejected but hope a second offer will bring them to the negotiating table.
Edwards said: “The bid that has come in is not anywhere near the level we’d expect it to be for him.
“If anything else was to come in again, then we’ll sit down and talk about it as a club and as a board.”
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The youngster burst onto the scene in his homeland of Brazil with Fluminense scoring seven goals in 28 games as a teenager.
He earned a move to Watford where he has netted 14 times in 78 appearances.
Pedro has already scored once this season but may be heading back to the Premier League.
He is versatile and can also operate in the left-wing.
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Newcastle boss Eddie Howe is supposedly desperate to add attacking depth to his squad with Chris Wood and the injury prone Callum Wilson up top.
Pedro's teammate Ismalia Sarr has been linked with a move back to the top flight too with Crystal Palace reportedly keen.
But Edwards dismissed claims there has been a bid: "The situation is pretty clear. We’ve not had a bid from anyone. So that’s where it is in terms of any sort of transfer speculation.”
If the 24-year-old does leave then Watford would lose their strongest front three after Emmanuel Dennis departed Vicarage Road for Nottingham Forest.
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