Newcastle United have agreed a fee with Borussia Dortmund for Spanish midfielder Mikel Merino who will head to the North East for talks over a permanent transfer.

The deal is a big breakthrough for the Magpies, who have had a frustrating summer and almost running commentary on how unhappy manager Rafa Benitez is about the lack of transfer progress.

The transfer of Merino will fill a key position for Newcastle alongside Jonjo Shelvey in the centre of midfield after the 21-year-old was personally recommended by Benitez. It feels very much like a peace offering to the Spanish manager.

That should hush some of the doubts about Benitez’s long-term future at St James’Park, although he still wants to bring in another four players in this transfer window.

Merino only moved to Dortmund last summer and was signed as one for the future by the German club, but Newcastle were informed he was unsettled and have been pursuing the deal quietly for several weeks.