Newcastle spoke to the family of Jobe Bellingham with a view to signing the teenager before his move to Sunderland in June.
The Magpies were keen on adding the attacking midfielder to their under-age ranks having monitored his development at Birmingham City and through England youth teams.
However, Bellingham and those close to him wanted a move that guaranteed first-team involvement and he has since played 26 times for the Black Cats.
The 18-year-old will now line up against Newcastle in Saturday’s Wear-Tyne derby at the Stadium of the Light, where he could lead the forward line if winger Patrick Roberts is passed fit.