The former Everton winger was persistently linked with a move away from St James' Park over the summer, and Liverpool were thought to have been spearheading the charge to reunite with their ex-academy product.
Gordon was allegedly telling his England teammates at Euro 2024 that a transfer to Anfield was on the cards, a move that hampered his playing time as he made just one substitute appearance at the tournament.
However, Liverpool could not strike a deal with Newcastle, despite apparently formulating a plan that would have seen Joe Gomez head the other way, as they signed Federico Chiesa from Juventus in a cut-price deal instead.
The Reds are still said to have retained an interest in signing Gordon, while Arsenal are also rumoured to have been keeping a close eye on the situation, but Newcastle have been fighting tooth and nail to tie him to fresh terms.
Gordon 'to stay at Newcastle until 2030'
The Magpies' efforts will reportedly bear fruit, as according to Football Insider, Gordon has now given the green light to a new six-year deal at St James' Park, which will run until the summer of 2030.
The report adds that Gordon's renewal will be announced imminently as he extends his contract by a further four years; his current terms are due to expire at the end of the 2025-26 campaign.
News of the winger's new contract comes as a crushing blow to both Arsenal and Liverpool, who will now be quoted a "huge" figure if they wish to prise him away from St James' Park next year.
Nevertheless, Liverpool are still said to be admirers of Gordon, although Newcastle do not expect any serious interest in the 23-year-old next year following their successful negotiations with his camp.
Gordon has managed 15 goals and 11 assists in 72 matches for the Magpies since joining from Everton midway through the 2022-23 season, including two goals from eight outings in 2024-25.
How big a blow is Gordon's new deal for Arsenal, Liverpool?
There is no denying Gordon's enormous talent and potential, but his new contract may be a blessing in disguise for Liverpool, who would have surely been better off pursuing other targets in 2025 anyway.
Gordon thrives on the left wing, but Luis Diaz has been one of the stars of the Reds' season in that position so far, and Cody Gakpo has also impressed under countryman Arne Slot when called upon.
Instead, Liverpool can now focus their efforts on agreeing new contracts for Mohamed Salah, Virgil van Dijk and Trent Alexander-Arnold, or finding a successor for any of the three if they do not pen fresh terms.
Meanwhile, Arsenal's Gabriel Martinelli and Leandro Trossard have engaged in a long-running battle for the left-wing position, a head-to-head contest that has certainly brought out the best in Trossard.
Martinelli has not quite hit the same heights he did in 2022-23, but his goal and assist against Leicester City last weekend could very well be the catalyst that he needs to kick on.