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By the start of February, we covered reports from Portugal which said Newcastle United are interested in Manuel Ugarte from Sporting.

It was claimed the Magpies have put the player in their ‘summer menu’, and already made approaches to know the conditions for that signing.

That story, from newspaper Record, claimed Sporting were actually about to renew Ugarte’s contract with the club, and that would automatically make Newcastle’s pursuit more difficult.

However, as the outlet features a new story about the midfielder today, they point out there’s been a ‘setback’ in the talks. The Lions wanted to increase his release clause from €60m to €80m, and those conditions blocked the deal for a new contract.

Record doesn’t mention Newcastle this time, only pointing out the player draws the interest from England.

Ugarte’s contract with Sporting only expires in 2026, which means the Lions won’t get desperate about his situation.

However, the rejection for a renewal may make the club uncomfortable, besides keeping his release clause, which could be used by the Magpies for a purchase with fewer negotiations involved.