The 20-year-old striker is wanted at several clubs in the Premier League with Leeds also believed to be interested in signing him; Andrea Radrizzani is suggested to be leading the Whites’ efforts.
But Newcastle are the ones who are pushing to get a deal done to sign him in the final weeks of the transfer window.
Watford have rejected a £20m bid from Newcastle and the Magpies have gone back with an improved offer for Pedro.
It has been claimed that the new offer is also some way away from Watford’s £35m valuation of the young striker.
But there is now confidence that a deal could be agreed between the two clubs for the forward’s transfer.
Newcastle are hopeful that a compromise fee could be negotiated with Watford for Pedro this week.
Eddie Howe is desperate to add a versatile attacker and believes Pedro is a talented young forward who could grow at St. James’ Park.
Leicester and Southampton also have their eyes on him but Newcastle are the club who are pushing the envelope for his signature.