Newcastle United ‘Prepare’ Loan Offer with ‘Mandatory’ £67m Buy Clause for Manchester City Star in ‘Done’ Deal

Newcastle United are reportedly closing in on a significant piece of summer business, with multiple sources claiming the Magpies are preparing a loan offer for a Manchester City star that includes a mandatory purchase clause worth £67 million. The deal is said to be virtually “done,” marking a potential coup for Eddie Howe’s side as they continue to reshape their squad for the 2025/26 campaign.

According to reports emerging from both Tyneside and Manchester, the player in question is Kalvin Phillips, the England international midfielder who has struggled to cement a regular place in Pep Guardiola’s all-conquering City squad. Newcastle are believed to be front-runners for his signature after a series of productive negotiations with City representatives.

Loan Deal with a Long-Term Vision

The structure of the deal is a 12-month loan with a mandatory purchase clause that will be triggered automatically at the end of the 2025/26 season. The clause, valued at £67 million, signals a significant financial commitment from Newcastle, but also underlines their belief in the player’s long-term importance to the squad.

Sources close to the situation describe the move as “all but done,” with formalities expected to be completed in the coming days. The player is thought to be open to the move, keen for regular first-team football in the Premier League and with one eye on maintaining his place in the England squad ahead of the 2026 World Cup.

A Fresh Start for Phillips

Kalvin Phillips joined Manchester City from Leeds United in 2022 for a reported fee of £45 million but has found consistent game time hard to come by. With fierce competition in midfield and frequent injuries disrupting his rhythm, Phillips has made only a handful of starts under Guardiola. He spent part of the 2024/25 season on loan at West Ham, where he showed glimpses of his best form but remained a peripheral figure overall.

Now 29, Phillips is seeking a more stable environment to revive his career—and Newcastle appears to be offering just that. Eddie Howe is understood to be a long-time admirer of the midfielder, viewing him as an ideal fit for his high-intensity system and a natural partner to Bruno Guimarães in the engine room.

Strategic Squad Building at Newcastle

This potential signing comes amid a broader strategic reshaping of the Newcastle squad. After narrowly missing out on Champions League qualification last season, the Magpies are determined to return stronger in 2025/26. Financial Fair Play restrictions have forced the club to be creative in the transfer market, making structured deals like this one for Phillips all the more attractive.

Newcastle’s sporting director Dan Ashworth has reportedly been instrumental in negotiating the terms of the agreement with City. By securing a one-year loan with an obligation to buy, the club can stagger the financial impact while securing the long-term services of a proven Premier League performer.

City Happy to Sell

From Manchester City’s perspective, the deal represents a satisfactory resolution to a situation that has lingered for more than a year. Guardiola has made it clear in press conferences that Phillips is “a great professional,” but he does not appear to be in the club’s long-term plans. With new midfield targets being pursued and emerging youth players vying for first-team places, the opportunity to recoup a substantial fee is appealing to the treble winners.

The £67 million valuation would represent a profit on their initial investment and help fund City’s own summer ambitions. There is no suggestion of a buy-back clause being included in the deal, further highlighting City’s willingness to draw a line under Phillips’ time at the Etihad.

What Next?

With the European Championship just weeks away, Newcastle will be eager to finalize the deal and integrate Phillips into their preseason plans as soon as possible. Personal terms are not expected to be an issue, with the player reportedly enthusiastic about working under Howe and becoming a key figure in Newcastle’s midfield.

If confirmed, this transfer could represent a turning point in Phillips’ career and a bold statement from Newcastle as they aim to re-establish themselves among the Premier League elite.

An official announcement is expected before the end of the week. Newcastle fans will be hoping the deal lives up to the growing excitement—and that Kalvin Phillips finally finds a home where he can thrive.