The Magpies could face competition from Everton for the signature of the England under 21 international.
Newcastle are set continue spending their transfer budget, with Blackpool winger Tom Ince next on their hit list, the Sunday Mirror reports.
The Magpies are close to signing French striker Bafetimbi Gomis, with the club discussing personal terms with the player following the confirmation that Lyon had accepted an £8 million bid for striker.
Newcastle boss Alan Pardew will now his attentions to Ince, who recently rejected the chance to move to Cardiff City, preferring to stay at Bloomfield Road with his father Paul Ince.
Pardew now knows how much he needs to pay for Ince, around £8 million and although that is more than they would like to pay for the winger, it is within their budget.
Although Ince rejected the chance to move to Cardiff, he would more interested in a move to Newcastle as they are an established Premier League side, despite their difficulties last season.
However, Newcastle will have to work quickly if they want to land Ince, with several clubs thought to be interested in the winger.
Everton manager Roberto Martinez is a long term admirer of the player, while Tottenham and Liverpool have had a long standing interest in the England under 21 international.