It's clear who Newcastle now must sign after Joao Pedro rejects them, he's been compared to Phil Foden

Newcastle United’s pursuit of Joao Pedro appears destined for disappointment, with the Brighton forward reportedly favoring Chelsea despite both clubs having £50 million bids rejected.

While this represents a setback for Eddie Howe’s recruitment plans, an intriguing alternative has emerged that could prove equally transformative at a fraction of the cost – Manchester City’s James McAtee, available for just £25 million.

The 22-year-old playmaker, fresh from captaining England’s U21s to European Championship glory, offers precisely the tactical flexibility Howe values.

Though not an exact like-for-like replacement for Pedro, McAtee’s ability to operate as an attacking midfielder, winger, or even false nine presents multiple solutions to Newcastle’s creative needs.

His three goals in just three Premier League starts last season demonstrate the clinical edge he could bring to St James’ Park, while Pep Guardiola’s glowing comparison to Phil Foden speaks volumes about his technical quality.

McAtee’s situation at City mirrors many talented academy products caught behind world-class competition. Guardiola’s January admission that “it’s not easy when you don’t get many minutes” hinted at the inevitable – for the sake of his development, McAtee needs regular first-team football.

Newcastle can offer exactly that, with Champions League football providing the perfect platform for the youngster to fulfill his undoubted potential.

Statistically, McAtee’s limited Premier League minutes last season (343 across 15 appearances) reveal an efficient contributor when given opportunities.

His 0.8 shots per 90 minutes and ability to drift between lines would add a new dimension to Newcastle’s attack, while his set-piece delivery could help unlock stubborn defenses – a persistent issue for Howe’s side last campaign.

Financially, the deal makes compelling sense. At £25 million, McAtee would cost less than half Pedro’s valuation, freeing funds to address other areas of need.

His homegrown status provides additional squad registration benefits, while his age (22) aligns perfectly with Newcastle’s strategy of building a young, upwardly mobile squad.

Crucially, McAtee arrives with point to prove rather than as a finished product – the kind of hungry, ambitious personality that has thrived under Howe’s management.

BRATISLAVA, SLOVAKIA – JUNE 28: James McAtee of England poses for a photo with the Player of the Match trophy following victory in the UEFA European Under-21 Championship 2025 Final match between England and Germany at National Football stadium on June 28, 2025 in Bratislava, Slovakia. (Photo by Tullio Puglia – UEFA/UEFA via Getty Images)

His leadership in guiding England’s U21s to continental success suggests the mental fortitude required to handle Newcastle’s passionate fanbase and the pressures of Champions League football.

While Newcastle will still need to secure a more traditional striker option after missing out on Pedro, McAtee represents the type of shrewd, value-driven signing that could become the hallmark of their recruitment in the PSR era.

His versatility would ease the creative burden on Bruno Guimarães while providing cover across multiple positions – an invaluable asset during a season that will demand squad rotation.

The coming days present a golden opportunity for Newcastle’s recruitment team. With City omitting McAtee from their Club World Cup squad and seemingly ready to sell, the Magpies can capitalize on their strong relationship with the Premier League champions to secure a player whose best years lie ahead.

In the cutthroat world of modern transfers, sometimes the most obvious solutions are right in front of us – James McAtee represents exactly that for Newcastle United.