Newcastle United are preparing a bid for Santos striker Marcos Leonardo in January.

The Mirror says Newcastle have opened talks with Santos for the youngster.

The Toon were told that a bid in the region of £25m would be entertained, but the Geordies are hopeful of negotiating a deal with Santos for a lesser fee.

Newcastle are aiming to make an opening offer of £16m.

Fulham and Chelsea are also interested in Leonardo.