NEWCASTLE UNITED seem destined to suffer further transfer frustration after it emerged Leicester City have entered the race for £20m-rated Everton midfielder James McCarthy.

The Magpies have tracked McCarthy for more than a year, with Rafael Benitez known to have earmarked him as someone he would like to hold things together in midfield.

However, just as they were in January, there has been a reluctance on Newcastle’s part to give Everton what they want for a player restricted to just 12 Premier League appearances last season.

The delay in striking a deal for the Republic of Ireland international, though, has opened the door for Leicester to test the water and there have been discussions between the two clubs.

Now the Foxes, keen to avoid the sort of poor start that cost Claudio Ranieri his job last season, are weighing up whether to follow it up with an offer.

Leicester have been told the asking price is £25m although Newcastle have been under the impression they could land him for nearer £20m.

The 26-year-old also has interest in him from West Brom and Crystal Palace and sources on Merseyside suggest Everton are willing to do business because of the changes to the squad that Ronald Koeman is overseeing this summer.

Benitez has also earmarked Fabian Delph as a potential alternative, although Stoke City are also in the market for him. Delph is likely to be a cheaper option, with the 27-year-old available for £12m.

The Newcastle boss has repeatedly had disappointment on the transfer front since delivering promotion, having failed to attract the number of players he would have liked so far.

They have been rebuffed in their attempts to sign Jacob Murphy and Ruben Loftus-Cheek this week, and those are merely the latest in a growing list with clubs demanding inflated fees for loans and transfers.

Benitez still hopes to get the deals he wants done, but he has only been able to lure Florian Lejeune from Eibar in an £8.7m deal and he also brought back Christian Atsu on loan permanently for £6.2m.

And, speaking at the club’s Foundation 1892 Cup, at the beginning of the week, Benitez said: "The top sides have a lot of money and the others are spending too. It's not easy for a lot of teams because the market is a little bit crazy. We have to try to do our best.

"We know where we are - that is not ideal because everybody wants to see a lot of players signing already - but we have to keep working and see what we can do.”