Newcastle have rejected an offer from Tottenham of around £80m for Sandro Tonali.
Spurs' offer landed earlier this week and was knocked back by Newcastle immediately.
The Italy international is a top target for Spurs boss Roberto De Zerbi as he looks to rebuild his squad after helping the club avoid relegation from the Premier League.
Man City are also interested in the midfielder, as well as continuing their pursuit of Nottingham Forest and England international Elliot Anderson.
Tonali, 26, has three years left on his Newcastle contract, with a club option for an additional year.
He signed for Newcastle from AC Milan for £55m three years ago.
One of the club's top priorities this summer is improving the technical ability of the squad and bringing in a midfielder who can dictate play.
Tonali has been identified by De Zerbi as an ideal candidate for that role.
The Italian will have a big say on transfers and a move for Newcastle's Tonali would underline Spurs' commitment to backing De Zerbi and their promise to spend significantly on improving the squad.
Your Site News reported in April that there was a general understanding that Tonali - along with Anthony Gordon and Tino Livramento - may like a new challenge this summer. Gordon has already signed for Barcelona in a £69m transfer.
Spurs have already secured the free-agent signings of Andy Robertson and Marcos Senesi, while a deal to sign
Brighton have made an improved £45m bid for Spurs' teenage centre-back Luka Vuskovic. The 19-year-old, who established himself as one of Europe's top young defenders on loan at Hamburg, is keen to move to Brighton.
As mentioned, Spurs are looking to create a squad capable of playing in the style of De Zerbi and finding a central midfielder who can dictate play is a key part of the plan.
Spurs have been searching for a winger to replace Heung-Min Son for a year but have so far been unsuccessful, failing with moves for Bryan Mbeumo and Antoine Semenyo. Man City's Savinho is one of the players on their list this summer.
De Zerbi also wants to bring in another striker, perhaps with the ability to play across the whole front line, to give him a variety of options in case Spurs' injury crisis does not let up next season.
Spurs may also need to sign another goalkeeper if Guglielmo Vicario returns to Italy. Juventus have him on their list as they evaluate a potential transfer, while Inter were previously interested. Antonin Kinsky kept the No 1 spot for the run-in under De Zerbi.
Do not rule out a permanent move for Joao Palhinha if Spurs can agree a fee with Bayern Munich after the set option price expired after the end of the season. Spurs face potential competition for his signature from Sporting.
