Newcastle United could 'go back in with another bid' as they look to lure Watford striker Joao Pedro to St James' Park, according to Sky Sports reporter Keith Downie.

The Magpies have made an unbeaten start to the new season, having beaten Nottingham Forest and secured a point at Brighton & Hove Albion, but head coach Eddie Howe may strengthen his squad ahead of the September 1 deadline.

GiveMeSport Transfer Verdict

What's the latest news involving Pedro?

Pedro was unable to stop Watford dropping into the Championship as they suffered relegation last season, but he could make a quickfire return to the Premier League.

Newcastle's interest in the Brazilian became clear when they made a £20million offer earlier this week, but the Hornets rejected the proposal and have insisted he is not for sale.

However, Watford's stance has not deterred the Tyneside giants as, according to MailOnline, an improved bid is being lined up.

The report suggests Watford value Pedro - who has already scored one goal this season - at £35million, but there is confidence that a compromise could be reached between the two clubs.

Transfer guru Fabrizio Romano has revealed that discussions over the 20-year-old will continue this week.

What has Keith Downie said about Pedro?

Downie believes there is a distinct possibility that Newcastle will test Watford's resolve with another bid for Pedro.

However, the Sky Sports reporter insists that the Magpies will not pay over the odds and could move onto alternative options.

Downie told GIVEMESPORT: "I think there's a chance they might go back in with another bid.

"I don't think they'll be held to ransom, though, and I don't think they're going to pay huge amounts of money for a player who's playing in the Championship.

"Yes, he looks like a good prospect, but I don't think they're going to push the boat out for him."

Would Pedro be a good signing for Newcastle?

Although Howe has spent close to £60million on Matt Targett, Nick Pope and Sven Botman, he has failed to bolster his options in the attacking third of the pitch since the transfer window reopened.

That is despite the Saudi Arabia-based Public Investment Fund's £305million takeover making Newcastle the richest club in world football.

Pedro's spell with Watford has allowed him to pick up Premier League experience, with him scoring three goals and adding a further assist in the competition.

While that is by no means prolific form, Hornets boss Rob Edwards has described the former Fluminense man as 'incredible', so he could be a shrewd investment.