Spanish media reported that Rafa Benitez had supposedly given the go ahead for Newcastle to try and tie up the signing of Jose Naranjo.
However, Celta Vigo have now confirmed that they have won the race to sign the 21 year old striker.
Jose Naranjo scored 16 goals in only 29 league starts (plus 7 as a sub) in the season just ended, despite playing predominantly as a left winger, though he can also play through the middle.
Aston Villa and Real Betis were also said to have registered their interest but in an official statement, Celta Vigo who finished sixth in La Liga last season have confirmed that the attacking player has signed a five year contract.
Jose Naranjo was on the books of Gimnastic de Tarragona (usually shortened to Nastic) but had a 3m euros (approx £2.3m) release clause.
After meeting the release clause, Celta Vigo are to have a public unveiling of their new signings at noon today.
Rafa Benitez confirmed last week that he had appointed an administrator at the club who was fluent in Spanish and French, as well as English, to help new signings with their life off the pitch, so they can concentrate on playing football.
So even though Jose Naranjo has proved not to be Newcastle’s first signing of the summer, Newcastle under Rafa Benitez look set to keep on looking for talent and value beyond these shores.