Newcastle's interest in Tottenham winger Andros Townsend has cooled, according to Sky sources.
The Magpies have had a loan offer and a £10.5m bid for the 24-year-old rejected this month, with Spurs understood to want closer to £14m for the England international.
That price appears to have put Newcastle off for now, with Watford believed to be monitoring developments ahead of the transfer deadline on February 1.
Townsend was dropped by Spurs for two weeks in November after a bust-up with fitness coach Nathan Gardiner and has not featured for the first team since October 22.
Fellow academy graduate Josh Onomah has since leapfrogged Townsend in boss Mauricio Pochettino's plans and he has been playing for Tottenham's U21 side to keep himself fit should any move materialise.