Pedro was a leading attacking target for the Magpies, who made an initial offer for the 23-year-old last week that was rejected by Brighton.
Albion’s hierarchy refused to budge on their £60m valuation – which was matched by Chelsea over the weekend. The Blues are also offering Pedro a lucrative seven-year contract at Stamford Bridge.
While Pedro was identified as a priority signing for Newcastle this summer, the Magpies – as reported by the Northern Echo last week – are determined not to get drawn into protracted bidding wars.
As Newcastle demonstrated with Marc Guehi last summer, they are willing to walk away from deals when they believe they’ve been quoted inflated asking prices.
There was suggestions at the start of this summer that Pedro would prefer a move to London and the forward is now set to become Chelsea’s sixth summer signing.
He could feature for Enzo Maresca’s side in the Club World Cup after flying from his homeland to the US for his medical. Chelsea face Palmeiras in the quarter-finals on Friday.
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As for Newcastle, club chiefs won’t panic despite a second transfer blow of the summer having been forced to admit defeat in their pursuit of Bryan Mbeumo, who made clear his desire to join Manchester United, last month.
With sporting director Paul Mitchell officially leaving the club at close of play today, boss Eddie Howe, Andy Howe and head of recruitment Steve Nickson will together lead on transfers in the coming weeks as United still chase a summer breakthrough.
United are hopeful of finally pushing through a deal to sign long-term target James Trafford, with club bosses holding productive talks with Burnley. Trafford wants the move to St James’ Park and personal terms won’t be an issue once the clubs have come to an agreement.
But Newcastle will now be forced into a rethink in their efforts to strengthen the attack after the Pedro blow.
Nottingham Forest’s Anthony Elanga remains a priority, with Newcastle having made a move for the winger last week. But what appealed to Howe about Pedro was his versatility and ability to play as a striker or in a deeper role or off the flank.
As well as strengthening at right wing this summer – which has been a priority for more than 12 months – Howe wants competition and cover for Alexander Isak.
Callum Wilson’s future remains uncertain, and while Will Osula impressed for Denmark at the European Under-21 Championship and Howe and his staff are delighted with the striker’s progression, the 21-year-old didn’t start a single Premier League game last season.
Newcastle continue to monitor Marc Guehi’s situation, with the centre-half set to this week enter the final year of his contract at Crystal Palace. But the Magpies face increasing competition for 24-year-old, who is admired by Arsenal and also now of interest to Liverpool.
Fresh reports over the weekend claim Palace – who last summer rejected an offer worth £65m from Newcastle – could now be willing to come to the table for as much as £20m less.
