But the Hammers, having already started a spending spree at the back end of last season under their new Scandinavian ownership, are poised to complete the £7million signing of Newcastle's Scott Parker.

Manchester City admitted on their official club website that both "Newcastle and West Ham have submitted bids of £5.5million or more for the player's [Barton's] services."

And Barton's agent Willie McKay confirmed that his client, capped by England against Spain earlier this year but facing possible police charges over a training ground clash with team-mate Ousmane Dabo, was undergoing a medical at St James' Park.

But West Ham are not entirely out of the running with McKay revealing that discussions are still to take place with the London club who splashed out £17million-plus on Luis Boa Morte, Lucas Neill, Nigel Quashie, Calum Davenport and Matthew Upson in the last transfer window.

Now they are keen to do business for former Charlton and Chelsea star Parker, whose position would come under threat from Barton's arrival at Newcastle.

The player has been abroad on holiday but is believed to be returning home to complete the formalities this week.

Meanwhile, Villa have made a £7million bid for Reo-Coker, the England Under-21 captain who wants to quit Upton Park.

He put in a transfer request last week, stating he "has not felt wanted for a long time - and when that is the case it is so frustrating."

Reo-Coker has fought a running battle with a section of West Ham fans who blamed him for former manager Alan Pardew's dismissal just before Christmas.

He played in every Premiership match for West Ham last season, apart from when he was suspended for three games, but was known to be disappointed when the club blocked his hopes of joining either Manchester United or Arsenal last summer.

Now Villa's Martin O'Neill wants to use him to spearhead his rebuilding plans at Villa Park, but he may have to wait until after the European Under-21 Championship in Holland later this month for any progress.

Also on his way out of Upton Park is striker Marlon Harewood.

The 27-year-old has confirmed he will leave this summer after an end-of season meeting with manager Alan Curbishley.

Manchester City and Wigan are two of the clubs already showing an interest in the £4million-rated forward, although Portsmouth's Harry Redknapp has said he is not involved.

Harewood said: "I've had four good years at the club but now it's time for me to find a new challenge.

"I've had a chat with the new manager and he obviously wants to bring his own players in. It happens everywhere."

Harewood, who fired the Hammers to the FA Cup final in 2006 with the winning goal against Middlesbrough in the semi-final, is desperate to play first-team top-flight football.

He scored just three Premiership goals last season but feels he still has plenty to offer.

The former Nottingham Forest forward, who joined West Ham in 2003, said: "I had a great season before last for West Ham playing 43 games and scoring 16 goals, but last season wasn't the best for me.

"But I'm so up for next season. I just can't wait to be scoring again and winning games for a team - that's what I want to be doing."