The Paraguayan international has fallen out of favour at Eastlands, but Newcastle boss Chris Hughton is reportedly keen on tying up a loan move before the transfer window closes at midnight on Tuesday.
Lazio are also thought to be interested in the 28-year-old, who moved to City on the strength of his Premier League goal record at Blackburn - where he scored 23 times in 57 games.
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Chelsea are trying one last time to lure Brazilian starlet Neymar to Stamford Bridge.
The 18-year-old has just signed a five-year deal at Santos, but the Daily Telegraph reports Chelsea could still get their man before the window shuts.
A summit meeting was apparently held on Tuesday night, with Chelsea officials making a final push to bring the midfielder to the Premier League.
Neymar was left out of Brazil's World Cup squad, but scored on his full international debut against the USA in a recent friendly.
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Finally, Steven Taylor is said to be fuming after being transfer listed at Newcastle.
The defender was reportedly not told he would be put up for sale, and is insisting he wants to stay.
But the Daily Mail reports a dispute over a clause in his contract led the Newcastle board to act swiftly and attempt to offload him as soon as possible.
Source: DSG
