After a goalless first-half, Newcastle's second-string trailed eight minutes after the restart at Whitley Park following John-Kymani Gordon's powerful effort into the right-hand corner.

The young Magpies threatened in the closing stages but were unable to find a much-needed equaliser against the Premier League 2 Division One outfit, leaving Newcastle's youngsters at the foot of Group E.

Elliott Dickman made six changes to the side which suffered a 4-0 defeat at Bristol City in their opening Group E game as goalkeeper Jude Smith, who made his international debut for Scotland under-21s last week, returned in-between the sticks while Alex Murphy, Lewis Miley, Isaac Westendorf, James Huntley and Jordan Hackett were all named in the starting XI.

After a quiet opening to the cup clash, Newcastle felt they ought to have won a penalty as striker Isaac Westendorf, who joined the Magpies' youth set-up in January following an impressive trial, was bundled over inside a crowded penalty area but the spot-kick appeal was waved away by referee Matthew Dicicco. 

James Huntley, who signed his first professional contract with the Magpies last summer, went close to registering his first goal as the midfielder's deflected shot from the edge of the box amost caught out Eagles goalkeeper Joe Whitworth, who gathered the attempt.

Smith was on hand to keep Newcastle on level terms as the 19-year-old blocked Ademola Ola-Adebomi's low drive after Gordon intercepted a stray pass before picking out the Palace striker.

Newcastle began the opening minutes of the second-half in bright fashion as Joe White, who signed a new three-year contract with United in March 2022, saw two long-range efforts held by Whitworth.

However, in the 53rd minute, Newcastle were dealt a sickening blow as Palace took the lead through Gordon as the left winger, who won September's Premier League 2 Player of the Month award, drilled a fierce effort into the far right-hand corner.

Josh Scott was introduced from the substitutes' bench and the Gateshead-born winger almost made an instant impact after latching onto Lewis Miley's dangerous cross from the left flank but the 20-year-old's close-range strike flew wildly over the bar.

Smith ensured Palace did not extend their advantage as the teenage goalkeeper stood firm before bravely blocking Ola-Adebomi's drilled strike inside the box, who struck the crossbar minutes later after powering a header from Maliq Cadogan's corner off the woodwork.

Newcastle continued their push for an equaliser and went narrowly close through White as the Cumbrian midfielder's curling attempt from the edge of the box produced an impressive one-handed stop from Whitworth.

Newcastle's second-string quickly turn their attention to Northumberland Senior Cup action in 48 hours' time when they travel to Hillheads to face Northern League Division One side Whitley Bay in the last-eight.

Newcastle United Under-21s: Jude Smith, Harry Barclay, Niall Brookwell, Alex Murphy (c), Jordan Hackett, James Huntley (Michael Ndiweni 80), Jay Turner-Cooke, Joe White, Dylan Stephenson, Lewis Miley, Isaac Westendorf (Josh Scott 57).

Subs not used: Charlie Wiggett, Max Thompson, Jamie Miley.