NEWCASTLE could be pipped to Kalvin Phillips’ signature by two Premier League rivals, according to reports.
Toon have been heavily linked with a move for the Manchester City midfielder this month.
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But they are stalling as signing Phillips could disrupt their long-term plans.
Phillips, 28, is available to leave on loan after featuring just ten times for City this season.
But the champions are demanding a £5million loan fee which could include an obligation to buy for a similar amount they bought him for – £40m.
According to iNews, that is what could be proving to be a sticking point for Newcastle, despite Eddie Howe reportedly being a fan of the England star.
The Magpies might be able to afford Phillips and could be willing to make the deal happen – but it could have a knock-on effect on their business in the summer.
That’s because Financial Fair Play restrictions will limit the amount the club can spend, with Newcastle likely lining up targets for the summer who may not be available this month.
Newcastle will reportedly save any business they do until later in January – that could allow other clubs to swoop for Phillips.
Crystal Palace and Fulham have been linked to the former Leeds ace and would be able to offer regular game time ahead of the Euros this summer.
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Phillips has also attracted interest on the continent with Juventus and Paris Saint-Germain also eyeing a loan deal.
City would likely prefer a permanent sale and use the money they get for Phillips on signing Fulham star Joao Palhinha.
