Kinnear – who was controversially bought back to the club in the summer by Newcastle owner Mike Ashley – thought he had unearthed a future star while on a scouting mission.
After watching Birmingham City take on Swansea in a recent League Cup game, the former Wimbledon boss spoke to Birmingham officials about young midfielder Shane Ferguson.
He expressed an interest in the midfielder, and even asked whether the Championship club would consider selling and for how much.
Birmingham officials were left stunned by the approach, and had to inform Kinnear that Ferguson was in fact at the club on a season long loan – from Newcastle.
Many Newcastle fans were unhappy with the appointment of Kinnear in the summer, claiming he was out of touch with the modern game.
Kinnear retorted that his football knowledge was second to none, and his contacts within the game would prove hugely beneficial for the North East club.
But this incident is unlikely to give his claim much credibility.
A Birmingham insider confirmed Kinnear’s latest gaffe.
“Shane Ferguson had a good game the night Joe watched us. After the match was over he spoke to one of our officials and said he was interested in signing him,” the source said.
“At first our guy thought he was joking but then he realised Joe didn’t know that Ferguson was already a Newcastle player.”