Celtic chief executive Peter Lawwell insists the club have not given up hope of retaining the services of striker Craig Bellamy next season.
The Wales international was a huge hit at Parkhead last season during his loan spell from Newcastle United before the close of the transfer window in January.
Bellamy claimed yesterday he was not interested in moving away from Newcastle despite interest from Celtic, Aston Villa, Everton and Birmingham.
However, Magpies boss Graeme Souness has already stated he will not allow the player to return to the Tyneside club after Bellamy slated the ex-Scotland international in a television interview last season.
As a result of that interview, the 25-year-old was farmed out to the Celtic Park club under the auspices of ex-boss, Martin O'Neill.
O'Neill has since stepped down from his position to care for his sick wife, Geraldine, and has been replaced by Gordon Strachan.
The former Coventry boss has previously worked with Bellamy at Highfield Road, albeit for just 10 months before the player moved to Newcastle in June 2001.
United paid a £6m fee and would be looking to recoup that in any permanent deal for the forward.
But a season-long loan move could prove to be the perfect answer to the dilemma facing Newcastle if no other Premiership club is willing to match Bellamy's wages and transfer valuation.
Lawwell told BBC Sport: "Talks are ongoing with Newcastle and the player's representatives and I am hopeful that a deal can be done."
Celtic attempted a similar move last season with the arrival of Henri Camara from Wolves for one campaign in return for £1.5m.
However, that did not work out with the Senegal international joining Southampton on loan instead in January before returning to Molineux this summer.
But Bellamy is already tried and tested in the rigours of Scottish football after his four-month stint last season.
Despite missing out on an title win after a last-day defeat at Motherwell cost the Hoops dearly, the Welshman picked up the Tennent's Scottish Cup with the Glasgow giants.
Bellamy persistently praised the club and supporters and clearly enjoyed playing for the Hoops.
But he states his preference as remaining with the Magpies in the Premiership - a move which would need some intense diplomatic negotiations between Newcastle chairman Freddy Shepherd, Souness and the striker.
In the meantime though, a further loan deal to Celtic could prove to be the ideal solution as the impasse continues between employee and employer.