Newcastle United risked losing Mikel Merino last week.
Super Deporte says Toon held off Valencia in order to secure Merino's permanent signature.
Athletic Bilbao were also extremely keen on the 21-year-old, but Rafa Benitez proved influential in convincing the midfielder to join from Borussia Dortmund over the summer.
Initially, Merino moved to Tyneside on a season-long loan, but that turned into a permanent £7 million transfer on Friday as United activated a clause to ensure the midfielder will remain at St James' Park until 2022.