Newcastle United still need to bring in a new centre back this summer.
Otamendi, 27, starred for Valencia last season, and has now made his move to the Premier League having signed for Manchester City earlier today.
The Argentine is now seen as the ideal partner for Vincent Kompany, and appears to have immediately ahead of Martin Demichelis and Eliaquim Mangala in the pecking order at the Etihad Stadium.
Now fifth choice under Manuel Pellegrini, Jason Denayer seemingly wants to leave City - even if it's just on loan again, having spent time with Celtic last term.
The 20-year-old was superb for Celtic last season, but deserves to be playing first-team football given that he has already three caps for the Belgium national team.
City will be keen to hand Denayer greater level of competition in his next loan move, and joining a Premier League club could be ideal for him right now, with Newcastle a sensible destination.
Steve McClaren's side still need another centre back even after signing Chancel Mbemba from Anderlecht earlier this summer, and Denayer could fit the bill for them.
Fabricio Coloccini and Mike Williamson both struggled last season, showing their age with a number of pedestrian displays in a leaky Newcastle back line. The likes of Mbemba and Denayer instead offer youth and athleticism in the Magpies defence, which is what Newcastle need after the displays of Coloccini and Williamson.
With a great reading of the game for his age, Denayer has the ability to play in the Premier League - and a loan move to Newcastle could give the Magpies a greater chance of a permanent deal in the future, if City continue to prioritise other defenders over the Belgian.
Fans may prefer a permanent signing, but Denayer's availability should be on Newcastle's agenda if they can't bring in a long-term centre back this summer.