Athletic Bilbao coach Cuco Ziganda admits they've missed out on Mikel Merino.

The Borussia Dortmund midfielder was a target for Bilbao, but is now in advanced talks to sign for Newcastle United on-loan.

Ziganda admits they were keen, but concedes Newcastle are set to win the race for Merino's signature.

"I have little to say according to us. I know his father and as far as I'm concerned I can only wish him well," said Ziganda.

"He'll do well."