Chelsea and Newcastle are set to miss out on wonderkid Youssoufa Moukoko with Borussia Dortmund finally agreeing terms on a contract extension.

Standard Sport understands the 18-year-old discussed a deal worth over £150,000 a week to join Newcastle on a free transfer when his contract expired at the end of the season. Saudi-backed Newcastle are targeting Champions League qualification and securing the best free transfers is part of their strategy to comply with Financial Fair Play (FFP) regulations.

Chelsea and Barcelona were also known to be monitoring the Germany international, who looked likely to be leaving Dortmund earlier this window as he struggled to reach an agreement with Dortmund.

Dortmund chief executive Hans-Joachim Watzke told Sky Germany on Thursday that Moukoko's exit was a real possibility.

"It is legitimate that [Moukoko] is now trying to get a good position for himself," he said. “But it is just as legitimate that we have our ideas and if that is not congruent, then the cooperation will just not be continued.

"That is the ultimate consequence, which can also happen. But of course, we hope that he stays with us. I think the whole process is quite normal. The difference is simply that he is only 18 years old and was already at the World Cup. This, of course, makes the whole thing even more public."

However, Sky Germany now claim a compromise between the player and club has been reached with Moukoko set to commit to BVB for the foreseeable.