The Magpies launched an audacious cut-price bid to recapture the 23-year-old, who they sold to Liverpool for £35million in January 2011, when it became obvious he had little future at Liverpool under new manager Brendan Rodgers this summer.
However, the Merseysiders opted instead to loan the player to West Ham.
Alan Pardew: "He's a Liverpool player and not wanted so at some point he's going to move permanently.
"I'd like to think we'll be in the mix for that.
"Big Andy hopefully one day will want to come back and certainly I'd like to have them both in my squad now because we would be stronger for it.
"But obviously finances restrict me from doing that.
"The position we are in, if I'm honest, is because we used the money from Andy's sale well.
"He was a brilliant player for us, but the fee was astronomical. We have used it well and we owe a great debt to him.
"It's nice to see Kevin come back. He did a super job here. Whatever he was asked to do, he conducted himself well. And he gets a goal. He has proven that at any level, he will get a goal.
"I'm looking forward to seeing them both and I enjoyed working with them.
"There will be a lot on the game. Kevin will be determined to get a result, as will Andy and the manager coming back.
"Both of those players would be good additions to this squad, but players have to move on for the sake of the team. That's the Andy Carroll one.
"Kevin was a bit different, he wanted a long contract we wouldn't commit to, but he got one at West Ham.
"He deserves it because he is a great player, but the board didn't think the long contract for Kevin was something he would get here."
"At one point I believed there was a chance I would get him.
"Yes, I thought there was a possibility of it.
"We were in there because he brings something different to the table to what we have got and we could probably do with another striker.
"We were right in there, but unfortunately we weren't able to get it done at board level."