Magpies boss Eddie Howe wants the Brazilian forward at St James’ Park before the transfer window closes, but Watford are reluctant to sell.
They have already rejected one proposal from Newcastle and are said to value Pedro at £30m.
Now Newcastle have tried again for the forward, but their proposal has again proven not to be enough for the Hornets.
Watford have wasted little time in rejecting Newcastle’s new bid for Pedro.
The Magpies will now have to decide whether to come back to the table with a third offer for the Brazilian.
Pedro has also attracted interest from Leeds United, but it is unclear if the Whites will enter the chase in the coming days.
Watford have already sold striker Emmanuel Dennis in the ongoing transfer window, while winger Ismaila Sarr is wanted by Crystal Palace.
Pedro played for Watford on Tuesday night in their 1-1 draw away at Birmingham City.
