Manchester United are frustrated with Newcastle who are only willing to offer £3 million of the £5 million the Reds want for the England midfielder.
But with Butt out of the picture, Lee Bowyer looks to capitalise on some excellent end-of-season performances last term.
Gary Speed has dismissed a move away from Newcastle, insisting he is happy at St. James', "I will remain a Newcastle player until I'm told differently." he said.
However fellow left sided center midfielder Hugo Viana is desperate to leave Newcastle. Porto have been linked but president Pinto da Costa has dispelled all rumours, saying "Viana? No, we're not interested. Our squad for the coming season is finalised".