Newcastle have been outbid by Manchester United for the Slovenia international, says talkSPORT.
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Newcastle had offered €80m before United made a bid of €75m plus €10m in bonuses on Tuesday.
Sesko is now favouring a move to Old Trafford and Newcastle won't hang around and intend to turn quickly to alternative targets.
Aston Villa striker Ollie Watkins and Sesko's RBL teammate Lois Openda are both on the Magpies' shortlist. Though also remain interested in Yoane Wissa after Brentford rejected a bid of £25m from Newcastle last week.