Newcastle United are pulling out of a deal to sign Joao Pedro this summer.
The Magpies were hot on the heels of the Watford forward in recent days.
However, The Daily Telegraph states that after securing an agreement with Real Sociedad for Alexander Isak, they are not signing Pedro.
The Magpies will pay almost £60 million for Isak, which is likely their last major outlay before the window closes.
The source adds that while Newcastle do want to bring in more players next to Isak, they will look at cheaper deals or loans.
While the club are flush with cash after a Saudi Arabia-backed takeover last season, they are being practical and frugal in their spending whenever possible.
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