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Brentford have turned down Newcastle's improved bid of £40m for striker Yoane Wissa
The Magpies were proposing a £35m initial fee plus a further £5m in add-ons.
Newcastle reopened talks with Brentford on Wednesday but sources told BBC Sport that the latest bid fell below the Bees' valuation of Wissa.
It is understood Wissa held talks with Brentford's owner Matthew Benham on Tuesday, a development that prompted the discussions.
The Magpies' previous bid for the 28-year-old was worth up to £30m.
Earlier this week, Wissa removed all association with Brentford from his Instagram account, external as his future took a fresh twist.
The DR Congo forward wants to join Newcastle but so far Brentford have refused to sanction his exit. He scored 19 goals in the Premier League last season.
It was first to reveal that Wissa had flown home early from their pre-season camp in Portugal in July after which he threatened not to play or train for the club again if they did not sanction his protracted move to St James' Park.
Since then there had been a slight thawing of relations resulting in Wissa returning to first-team training while continuing to make absolutely clear he wanted to join Newcastle.
Wissa believed that Brentford would sanction his transfer north once they signed his replacement.
Indeed, Wissa has been expecting Brentford to agree his move to Tyneside this week after the west London side completed the signing of Dango Ouattara from Bournemouth.
Brentford have already lost fellow forward Bryan Mbeumo this summer to Manchester United.
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