Tottenham Hotspur have rejected Newcastle United’s opening approach for midfielder, according to Fabrizio Romano.
Despite the setback, Newcastle remain fully committed to the deal, with Eddie Howe’s recruitment team continuing to track the highly rated England Under-21 international.
Tottenham are reportedly unwilling to sell the 20-year-old unless they receive an exceptional offer. Newcastle, meanwhile, view Gray as a key target as they look to strengthen their squad following a disappointing Premier League campaign.
Gray, who joined Tottenham from Leeds United, is currently valued at around €58.2 million, although his valuation previously peaked at €72.5 million.

Although he was used sparingly by manager Roberto De Zerbi last season, Gray still made 32 appearances in all competitions, including 24 Premier League games, with 18 starts. He scored two goals, provided three assists, and recorded 133 defensive contributions over the campaign.
The midfielder also posted an 83.1% pass accuracy rate, underlining his composure and technical quality. Newcastle believe he has the potential to develop into a top-level international under Eddie Howe.
Tottenham have already strengthened their midfield by signing Mateus Fernandes from West Ham for £85 million, increasing competition for places in North London.
There have also been rumours of a possible wider negotiation involving Sandro Tonali moving to Tottenham, although no formal talks have been confirmed.
For now, Spurs have rejected Newcastle’s first bid, but the Magpies are expected to return with another approach as they continue their search for midfield reinforcements this summer.