The Magpies have a number of irons in the fire as they look to add to Eddie Howe’s attacking options, but have regularly faced frustration at how much clubs want for targets.
They now want Pedro and have slapped in a £20m bid with Watford for his services.
The Hornets have rejected the offer though as they have no intention of letting the 20-year-old, who they rate highly, move on.
Leeds are also interested in Pedro and it was recently claimed the club’s chairman Andrea Radrizzani had taken personal charge of the pursuit.
Watford though view Pedro as key to their hopes of bouncing straight back up to the Premier League.
The attacker has started all three of Watford’s Championship games so far and scored against Sheffield United.
Newcastle and Leeds may have to put a bid well north of £20m on the table to tempt Watford into changing their stance on Pedro.