Sunderland have been boosted by the news that midfielder Lee Cattermole has signed a new six-year deal with the club.
The former Middlesbrough man impressed Dick Advocaat in the latter stages of last season and was a key influence in their successful fight for survival.
Sunderland hope to complete the signing of Liverpool defender Sebastian Coates later this week.
The Black Cats are close to tying up a £2million deal for the 24-year-old Uruguay international, who had a loan spell at the Stadium of Light last season.
Press Association Sport understands talks are ongoing and that the club is hopeful of reaching a successful conclusion within days.
Coates is currently enjoying a break after Uruguay's involvement in the Copa America, but with just a year of his contract at Anfield to run, is expected to leave this summer.
Newcastle managing director Lee Charnley is facing a battle to make a summer transfer breakthrough after neighbours Sunderland entered the race to capture one of Steve McClaren's top targets.
It is understood that the Black Cats have made an offer of in excess of £11million for PSV Eindhoven's highly-rated midfielder Georginio Wijnaldum, a man identified by the Magpies' new head coach as a key acquisition following his appointment earlier this month.
Sunderland counterpart Dick Advocaat himself is understood to have made contact with the Dutch club to register his interest in the 24-year-old Holland international, who scored 14 Eredivisie goals last season as PSV cruised to the title.
In the process, he has firmly thrown down the gauntlet to Newcastle and Charnley, who has been charged with the task of doing the deals by owner Mike Ashley after identifying targets in a series of meetings with McClaren and chief scout Graham Carr.
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Dick Advocaat has agreed to stay on as Sunderland manager, the Premier League club have confirmed.
It looked like the Dutchman was set to depart the club after announcing he would not continue in his role.
The main sticking point for the 67-year-old was getting his wife to agree to him staying at the Stadium of Light.
Advocaat had always said Sunderland would be his last job in club management, but he will now carry for another year.
DA: “It was a great feeling to be part of Sunderland in the last few months, the experience was something very special." (1/2)
DA: "After talking with Lee, Ellis and of course my family, we all agree it is the right decision." (2/2)
Dick Advocaat is set to perform a quasi-dramatic U-turn and remain as Sunderland manager.
The Dutchman kept the club in the Premier League after taking over from Gus Poyet.
Last month Advocaat announced he would not extend his deal at Sunderland, but it is now thought he has changed his mind.
Sunderland winger Adam Johnson has pleaded not guilty to four child sex charges.
Johnson is accused of three counts of sexual activity with a child and one of grooming at Durham Crown Court.
The trial will start on 24 August, it was confirmed.
Dick Advocaat says he will not continue as Sunderland manager next season, the club have confirmed.
Dick Advocaat plans to make a swift decision over whether he accepts Sunderland's offer of a new contract after guiding the Black Cats to Premier League survival.
The Dutchman, who revealed the offer on Friday, said a two or three-year contract was on the table following Sunday's 3-1 loss at Chelsea.
"I have to be honest to myself and to everybody about what I will do for the future," said Advocaat, who was emotional after sealing survival with Wednesday night's goalless draw at Arsenal.
"They offered me already two or three years."
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