Kenedy has returned to Chelsea after an inconsistent season on-loan with Newcastle United.
The Sun says the deal had given the club the option to buy him for £30million this summer.
But the 23-year-old winger struggled to hold down a regular place in the side and Rafa Benitez decided he was not worth keeping for next season.
That means Kenedy will now return to Chelsea where he faces uncertainty over his future.
There's now just 12 months left on his existing deal.