Also known as the Hybridization Hypothesis.
It is believed that Neanderthals and Sapiens met, interbred and eventually after sometime the more dominant Sapien DNA essentially washed out the Neanderthal DNA.
This is supported by the fact of people with no African ancestors can have up to 4% Neandethal DNA.
Svante Paabo at the Max Planck institute supports this theory.
The recent discovery of a Denisovan bone supports this theory.
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