Newell's Old Boys chief Pablo Morosano is now on Wearside trying to push through a deal for Sunderland striker Nacho Scocco.
The Sunderland Echo says their initial offer of around £1.7m has been rejected by the Black Cats.
Morosano has subsequently arrived on Wearside in an attempt to close the deal, but Newell's proposal to buy half of Scocco's contract for £1.7m has been swiftly turned down by Sunderland.
The Black Cats want to recoup the £3.2m fee they splashed out on Scocco in the January transfer window, as they look to comply with the regulations of Financial Fair Play.
