Newcastle United are battling to settle on a fee with Swansea City for Federico Fernandez.

The Sun says Toon boss Rafa Benitez faces new transfer frustration as Swansea have slapped a £10million price tag on Fernandez.

The Toon chief wants the Argentinian defender, 29, on loan to stay inside the tight budget he has been handed by owner Mike Ashley.

But the Swans have said no to a season-long switch and want a bigger fee for Fernandez than they demanded of Russian side Krasnador.

Newcastle have already snapped up a new centre-half in Deportivo La Coruna's Fabian Schar to replace Porto-bound Chancel Mbemba.

But with Leicester hot on the heels of captain Jamaal Lascelles, Benitez wants to ensure he is not caught light on numbers at the start of the Premier League season.