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Newcastle United’s chances of signing youngster William Gomes will be dependent on how much they are willing to spend on him.

That’s according to journalist Paulo do Valle, via UOL, who says Newcastle are ‘investigating the situation’ around the 18-year-old.

A report earlier today stated that Newcastle were eyeing up the São Paulo winger and could move for him in the January transfer window.

Informal talks between Newcastle and representatives of the Brazilian club have already taken place but the Magpies are yet to table a formal bid.

He, though, is on their list of potential targets and São Paulo could be willing to sell and make him their ‘important sale’ for next year.

The key question was what they would sell at, with the likes of Transfermarkt valuing the youngster at €5m but his current deal, which runs until December 2028, including a €120m release clause, specifically for clubs outside of Brazil.

How much Newcastle would want to spend on him is up for debate, particularly after a quiet summer hampered by FFP and PSR, and Do Valle insists it’s all about money at this point.

“Regarding the transfer market, one possibility: Newcastle is investigating the situation of William Gomes, who recently renewed his contract with the São Paulo team and who knows, he may be a player traded by the club depending on the offer that comes in the next window,” he said.

“Remember that Newcastle is currently one of the clubs with the best budget among those competing in the Premier League,” added fellow journalist Elia Junior.

“Ah, but as big as City or United?  No, it is not as big as City or United, but it is a budget close to Chelsea’s, a budget close to Tottenham’s. Today, the Arabs invest heavily in the Newcastle team, which has Bruno Guimarães as one of its references.”