NEWCASTLE UNITED are facing the prospect of having to welcome Hugo Viana back to Tyneside - or accept a massive loss on the former European Young Player of the Year.

Magpies chairman Freddy Shepherd met with Sporting Lisbon chief executive Carlos Freitas on Wednesday to discuss a deal that would see Viana return to the club permanently.

But the chances of a move materialising still look bleak with Newcastle aiming to recoup a large share of the £8.5m paid in June 2002.

It is believed that Shepherd is hoping to receive at least £5m for the Portuguese international but Sporting, struggling to raise funds, don't have that sort of money.

In fact, Sporting are hoping that they can persuade Newcastle to take a derisory figure in exchange for a clause in the contract that would entitle the Premiership club to a large percentage of any future sale.

But even that is unlikely to tempt Newcastle.

They would struggle to see the benefits of receiving a knocked down fee, that could be as low as £1.5m.

Viana, on loan at the Estadio Jose Alvalade until the end of the season, is under no illusions about the situation but is ready to accept a pay cut in an attempt to help a transfer go through.

"What is important to me is that I stay with Sporting," said Viana. "That's my home and that's where I feel good. I will do everything to stay with Sporting. I don't want to go back to Newcastle and I want to remain with this club."

The player's plea could be hindered by Sporting's determination to sign another of this season's loan stars, Fabio Rochemback.

Rochemback has similar terms with the SuperLiga side and his parent club, Barcelona, are also doing everything they can to move him from their wage bill permanently.

Viana's situation could be helped if Sporting were to go on to glory in the UEFA Cup - a run that would raise them around £10m.

But that would only come if the Portuguese giants knocked Newcastle out at the quarter-final stage next month. A game that Viana looks destined to miss.

The creative middle man, on international duty this week, was not allowed to play in the group phase fixture between the two clubs earlier in the campaign because of a clause in the loan agreement.

Newcastle are refusing to backtrack on their decision ahead of the last eight meeting.

But Viana, who only made 28 starts during Sir Bobby Robson's reign, said: "I would love to play against Newcastle, whether that was in the final, the semi-finals or the quarter-finals. Whenever it is I have to accept what decision is made by Newcastle."

Meanwhile, Kieron Dyer has put his recent goalscoring form down to Newcastle coach and former Liverpool striker Dean Saunders.

Dyer has found the net in his last two matches at club level and his dynamic displays have even led to him being mentioned as a possible starter for England in tomorrow's friendly with Wales.

Saunders, a legendary forward for Wales, has been working with the midfielder on the training ground.

And Dyer, looking for his first international goal, only needs one more to equal his best scoring record of six in a Newcastle shirt.

"Dean has been a massive help to me this season," he said. "I'm full of confidence and goals are a bonus. I've done a lot of work on my finishing with Dean and it's nice to see that pay off.''