The Venezuelan has a £16.5m release clause written into his contract, but instead of triggering it, the Magpies have offered to take the striker on loan next season.
That offer has annoyed decision-makers at The Hawthorns, who have no intention of letting their senior players leave on the cheap, and has been flatly rejected.
Rondon only has one year left on his Albion contract, making a season-long loan economically senseless for the Baggies, because he could be a free agent next summer.
Newcastle tried the cheeky offer because cash-strapped boss Rafa Benitez has been told he needs to sell-to-buy this summer.
But he remains keen on Rondon, and could trigger his release clause to replace exit-bound Aleksandar Mitrovic once the Serbian is sold.
Albion are eyeing up Middlesbrough’s Britt Assombalonga and Derby County’s Matej Vydra as potential replacements up front should they lose either Rondon or Jay Rodriguez.
Burnley are keen on both Rodriguez and defender Craig Dawson, who has handed in a transfer request to try and force a move.
The Clarets are in regular contact with the Baggies, but have not met Albion’s £20m valuation for either of them.
Albion have signed two goalkeepers and a defender this summer, but are currently attempting to bring in a third keeper and another centre-back.