Newcastle have stepped into the battle for James McCarthy as they look to beat Everton to the Wigan midfielder.

Wigan want at least £15m for the 22-year-old but both clubs are looking to open with offers of around £8m.

Everton ideally need to sell first while Newcastle are awaiting an improved offer from Arsenal for Yohan Cabaye.

Newcastle boss Alan Pardew is steeling himself to lose the French midfielder.

Pardew told the Chronicle: 'You can't say he is definitely going to stay so the mindset of the player is such that we need to be on guard.

'We are on the case with that. We have to be armed. We need to resolve it.

'If he goes good luck to him. Bye bye. We need to replace him with somebody as good.'

Sunderland are considering a loan for Inter Milan midfielder Zdravko Kuzmanovic 25 as well as Ki Sung-Yeung from Swansea while Cardiff are in talks with Heerenveen over a £4m deal for prolific Iceland striker Alfred Finnbogason 24.