Newcastle are not pursuing their move for Everton striker Dominic Calvert-Lewin.
They had been in talks with the 27-year-old but a £40m deal has proved too costly.
Calvert-Lewin has a year left on his contract at Goodison Park and is a player Newcastle boss Eddie Howe had been monitoring for several years.
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Calvert-Lewin, who has 11 caps for England, has scored 68 goals in 247 appearances across all competitions for Everton since making his debut in 2016.
Everton, meanwhile, are unlikely to sign Newcastle winger Yankuba Minteh.
The 19-year-old spent a successful season with Arne Slot's Feyenoord last year but has never played a game for Newcastle.
Newcastle have a serious offer on the table from Lyon for Minteh.
Both moves would have helped Newcastle and Everton with their respective issues around profit and sustainability rules (PSR).
PSR explained: What limits clubs spending more?
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Iroegbunam becomes Everton's first summer signing
Everton announced their first signing of the summer transfer window on Saturday, with midfielder Tim Iroegbunam arriving on a three-year deal from Aston Villa.
The 20-year-old, who has cost a reported £9m, was a European U19 Championship winner with England in 2022 and has also represented the U20s.
Iroegbunam came through West Brom's academy, making his senior debut in May 2021 before moving to Villa a month later.
He made his debut for Villa in February 2022 and went on to make 12 Premier League appearances for them, although only two were starts.
"We're pleased to add Tim to our midfield options. He is a young player who is still learning and developing but clearly has a lot of the qualities we want in that area of the pitch," said Everton manager Sean Dyche.
"My coaching staff and I are looking forward to starting to work with him in pre-season."
Villa are currently in talks with Everton to sign 21-year-old winger Lewis Dobbin.
PSR explained: What limits clubs spending more?
In the simplest terms, when every Premier League team tots up their annual accounts, they can have made a loss no greater than £105m across the previous three seasons.
Clubs can only lose £15m of their own money across those three years. So that's no more than £15m extra on outgoings like transfer fees, player wages and, in a lot of clubs' cases, paying off former managers compared to their income from TV payments, season tickets, selling players and so on.
The other £90m of any £105m must be guaranteed by their owners buying up shares, known as 'secure funding', and essentially means bankrolling the club.
When does the summer transfer window open and close?
The 2024 summer transfer window in the Premier League and Scottish Premiership is officially open.
The window will close on August 30 at 11pm UK time in England and at 11.30pm in Scotland.
The Premier League and Scottish Premiership brought forward Deadline Day to link up with the other major leagues in Europe. The closing dates were set following discussions with the leagues in England, Germany, Italy, Spain and France.