It emerged recently that Newcastle have agreed on a deal worth €40m with Lyon for the signature of 24-year-old Brazilian midfielder Guimaraes.
There were suggestions that a deal is not done as Newcastle are still negotiating the payment structure and sorting out issues relating to agent fees.
But Lyon came out with a strong denial of any agreement with Newcastle and officially rubbished the claims made throughout the day.
However, Newcastle feel that the negotiations are still on track and Guimaraes is scheduled for a medical on Friday in South America.
Talks are still ongoing between the two clubs and Newcastle are looking to sort out the differences with Lyon.
The Magpies are hopeful that all the issues will be resolved and they will have a definitive agreement with the French club.
Other clubs such as Arsenal and Tottenham also have their eyes on Guimaraes and are believed to be keeping close tabs on the situation.
Newcastle will hope to avoid further disappointment in the transfer window after their struggles this month.
