Revealed: Newcastle were ready to sell Anthony Gordon to LIVERPOOL this week before talks broke down - with Jarell Quansah part of proposed deal - as club desperately search for options to avoid PSR points deduction

Newcastle were ready to sell Anthony Gordon to Liverpool this week as they strive to comply with financial rules - but talks over a move have broken down.

The Reds admire the England winger but the proposed deal - said to include defender Jarell Quansah heading in the opposite direction - was not right for them. They did not want to lose Quansah, who they see as a future England international, and also have strength in depth in wide areas.

Liverpool may have proceeded had the package been different, but they did not make an offer after discussions with the Magpies. There is a chance talks could be revived over the weekend.

Gordon is currently with England at the European Championship and, had there been progress, a medical in Leipzig was mooted. Paris Saint-Germain are also thought to admire the 23-year-old.

Newcastle need to sell before June 30 to comply with Profit and Sustainability Rules - or risk a Premier League points deduction - and sources have confirmed that selling Gordon, albeit reluctantly, is one avenue that has been explored.

The player is happy at St James’ Park and loves working under Eddie Howe, but he was aware of the talks between his current employers and his boyhood club.

Howe does not want to lose a player signed from Everton for £45million 18 months ago, but there is an acceptance the club needs to trade to meet PSR. Gordon was Newcastle’s player of the season and is hugely popular on Tyneside.

Meanwhile, Newcastle are in talks with Nottingham Forest over a potential deal for winger Anthony Elanga that could see Elliot Anderson go in the opposite direction.

The proposal is one of many Newcastle are juggling as they, and other clubs, work towards raising revenue to meet PSR guidelines by Sunday's June 30 accounting deadline.

Elanga only joined Forest a year ago from Manchester United for £15million and was on Newcastle's scouting radar prior to his move from Old Trafford.

He has been a success at the City Ground scoring five goals in 39 appearances and Newcastle believe the skilful 22-year old Sweden international can be an ideal addition to their squad.

Newcastle midfielder Anderson is homegrown so his sale would be a greater boost for the club’s accounts in PSR terms as he is viewed as clear profit.

The 21-year old was understood to be one of the names offered in a discussion regarding Wolves defender Max Kilman last week but Forest are now keen to add the Scotland U21 international to their ranks and talks are taking place.

Forest expect to sell Moussa Niakhate to Lyon for around £20m while Juventus and Chelsea have asked about Brazilian centre back Murillo.

Forest have their own PSR concerns while Chelsea have also made renewed checks on Newcastle's asking price for striker Alexander Isak, mindful of what business needs to be done by this weekend.