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Watford have had a £5million bid for M’Baye Niang rejected by AC Milan.
The 22-year-old spent the second half of last season on loan at Vicarage Road, making 16 Premier League appearances and scoring twice.
Niang expressed little interest in making a permanent move after revealing his disappointment at Walter Mazzarri’s departure from the club, but new manager Marco Silva had hoped to convince the midfielder to return to England with a fresh offer.
Standard Sport understands that Milan value Niang at £18m and so the clubs are a long way apart in their valuations.
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And Niang is also believed to be reluctant to reconsider his position so Watford will have to come up with a significant financial package to convince both the club and player over a move or turn their attentions elsewhere.
Newcastle have also signalled an interest in Niang, who has two years left on his contract at Milan, but are yet to make a formal bid.