The 19-year-old was withdrawn from the Palace squad which played at Newcastle on Wednesday evening by the club's administrators, and the Magpies are understood to have made their move with promotion rivals Nottingham Forest and West Brom also interested and a series of top-flight clubs monitoring the situation.

Boss Chris Hughton said: "It's been documented that we are very interested in signing the lad.

"Most people are also aware of the circumstances with Crystal Palace and the situation they are in, and we hope to make progress on that over the next couple of days.

"It's one we have a very, very keen interest in. He is a player who has an ability to score goals. There is a power and pace, but it is his potential.

"Around what we are trying to do here this season, which is the most important thing, there also has to be an eye on the future, and he is certainly a player of wonderful potential."

A Chicago-based investment company are in talks to take control of Championship club SHEFFIELD WEDNESDAY.

Club Sports 9 is a joint venture between a sports management company and a merchant bank and they have been discussing the takeover with the Owls since August.

If the move was successful, chairman Lee Strafford and chief executive Nick Parker would maintain their roles at the club.

The group's managing partner John Prutch said: "We have been impressed not just by the rich history of Sheffield Wednesday, but the opportunity that exists to work with the current management and once again make the club a major force within English football.

"That said, there is no guarantee that any deal will be completed.

"I ask everybody who wants Sheffield Wednesday again to be successful for their patience at this time. Negotiations will continue with all the various parties in the coming weeks and we hope that a successful conclusion can be reached in due course."

BLACKPOOL boss Ian Holloway has confirmed the club have rejected a bid from Championship rivals MIDDLESBROUGH for Charlie Adam.

The Scotland international has scored 12 goals from midfield this season, following his £500,000 move from SPL side Rangers, and a number of clubs have been linked with a move for his services.

Middlesbrough boss Gordon Strachan is a big admirer of Adam and is believed to have tabled a £1.5million bid for the midfielder as he considers replacements for Manchester City target Adam Johnson.

Holloway told the Blackpool Gazette: "I've told Charlie about the offer.

"We have a bit of a pact that I want to get him to a club that - if I'm allowed to say it - in a much, much better situation than us. Why leave Rangers to come to Blackpool and then step sideways? Why do that when I think he can step up?

"I think he will still be here at the end of the season. It is normally after 18 months that I lose them."

WATFORD have signed defender Martin Taylor on a free transfer from Birmingham.

The 30-year-old spent six years at St Andrew's having signed from Blackburn in January 2004.

He has signed a contract with Watford through to 2012, with his deal at Birmingham due to expire this summer. The centre-back made 117 appearances for Blues, scoring three goals.

LEEDS have signed Birmingham striker Gary McSheffrey on loan until the end of the season.

The 27-year-old, who scored 20 goals in 94 appearances for the Blues, goes straight into the Leeds squad to face Colchester on Saturday.

United manager Simon Grayson is pleased with his acquisition and told his club's official website www.leedsunited.com: "Gary brings plenty of experience and he is a good signing.

"He's coming from the Premier League to League One and he will add quality to the squad.

"He is a threat, he can play a number of positions, and we're delighted to have him here."

BOURNEMOUTH have re-signed defender Rhoys Wiggins from NORWICH on an emergency 28-day loan.

The Cherries are under a transfer embargo, but received special dispensation from the Football League to sign Wiggins, who made 13 appearances on loan with the Cherries during a six-month spell last season, because of an injury crisis.

Lee Peacock has swapped SWINDON'S battle for promotion to the Championship for GRIMSBY'S fight against relegation from the Football League after signing a deal until the end of next season.