HITC Sport understands that Andros Townsend talks continue.
Newcastle United have denied making a bid for James McCarthy whilst they continue talks over Andros Townsend, HITC Sport understands.
Reports had suggested that Newcastle had lodged an offer, but sources have told HITC Sport that is not the case.
Newcastle have spoken with Everton about the Irish midfielder - who is eager to leave Goodison Park, but Toffees owner Bill Kenwright does not want to entertain letting him leave this month.
Everton sources told HITC Sport: "There is no way McCarthy is leaving this month, Bill has made that very clear."
England's Andros Townsend during training
Newcastle's main target in recent weeks has been Townsend, and sources have confirmed to HITC Sport that Crystal Palace are ready to agree to a loan with a permanent deal in the summer.
Palace have asked about Chancel Mbemba, but it is understood that would not be tied to a deal for Townsend - should it progress.
Newcastle's transfer supremo Graham Carr, has sanctioned the re-signing of Townsend, as per Mike Ashley's instructions about the club incoming deals earlier this month.
Have something to tell us about this article?