After a day of deadlock and rapidly deteriorating relations between United and the Lingard camp, Newcastle have all but given up hope of reviving the deal.
It is understood the club's new Saudi Arabian owners baulked at the bonus - payable if they stay in the Premier League - in addition to a £2.5m loan fee and the player's £100,000-a-week wages.
The potential cost of loaning Lingard for the final four months of his United contract would be £16.5m, the equivalent of £1m-a-week, making it one of the most expensive loan deals in history.
United believe that is a fair price for an experienced England international and say the bonus is reasonable considering the financial impact of relegation from the top flight.
Club sources also argue Lingard could have made a permanent move this month, but wants to leave Old Trafford on a more lucrative free transfer at the end of the season.
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