RB Leipzig's hierarchy met with Benjamin Sesko and his agent Elvis Basanovic on Sunday night to discuss the striker's possible sale to one of two Premier League clubs.
But the Bundesliga club have firmly rejected Newcastle's initial offer of €75 million plus a €5 million bonus, demanding a guaranteed €80 million up front, while Manchester United remain hopeful of usurping the Toon by bringing the Slovenia star to Old Trafford instead.
Sesko was not in Leipzig's matchday squad for their friendly against Serie A side Atalanta on Saturday afternoon with the much coveted striker kept out amid the tug of war between the Premier League giants.
Newcastle, meanwhile, are in a separate dispute with their current top marksman Alexander Isak looking to pursue a new challenge. Liverpool remain the frontrunner to sign the Sweden international but his asking price remains an issue.
READ MORE: Benjamin Sesko omitted from Leipzig squad as Man Utd vs Newcastle transfer battle heats up
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It is unclear how interlinked Isak's future is with their move for Sesko with manager Eddie Howe previously stating his desire to have two high-class options for every position.
United made their first approach for the Slovenian star last week, through intermediaries, who opened up dialogue over a potential deal. Those talks have progressed and will be stepped up this week, once United have returned home from their three-game tour of the US.
Although United are looking to offload several players before the summer transfer window closes, they have scope to sign a striker without selling. Marcus Rashford's season-long loan move to Barcelona cleared £12m off their annual wage bill, with the La Liga club covering his entire salary.
United also raised £20.7m from sell-on clauses including Anthony Elanga’s switch to Newcastle, moves for Alvaro Fernandez and Maxi Oyedele, and the £5m paid by Chelsea to pull out of their deal to sign Jadon Sancho.
In addition, United's failure to qualify for Europe this season – for only the second time in 35 years - means they are not bound by UEFA'S limit of spending no more than 70 per cent of annual income on transfers and wages.
The structure of the deals for Matheus Cunha and Bryan Mbeumo, who cost a combined £133.5m, with payments spread over instalments, has given United greater freedom to spend.
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