The 18-year-old right-back has been in the middle of a transfer tussle due to several clubs wanting to sign him in the ongoing transfer window.
Newcastle held talks with his representatives and discussed terms, with it appearing they were serious contenders to sign him.
However, the Magpies have now dropped out of the race for the defender, leaving Arsenal and Dortmund as options.
And it has been suggested that Fresneda’s decision is set to be known sometime later today.
Both Dortmund and Arsenal have agreed on personal terms with the player’s representatives and are awaiting his decision.
They have also agreed on a fee with Valladolid with the Spanish club set to bag somewhere around €15m.
Regardless of which club he decides to choose, Fresneda will be loaned back to Valladolid for the rest of the season.