He left Blackburn for Birmingham City for £750,000 in the summer of 1996. However, this spell proved to be unsuccessful, Newell scoring only three times with a strike against Sheffield United in the league and a brace against Brighton in the League Cup. This was the beginning of a five-year spell at seven different clubs. Newell left Birmingham to join West Ham United on loan in December 1996, before a similar spell at Bradford City in March 1997. Before he was loaned to West Ham, Birmingham had accepted a £750,000 bid from Bolton Wanderers for Newell, but he was unable to agree a contract and the transfer fell through.