Newcastle and Norwich have agreed a deal potentially worth £12.5m for Jacob Murphy to move to St James’ Park.
Norwich recently rejected an offer from Newcastle for the 22-year-old but talks between the two clubs continued.
Winger Murphy, from Wembley, has been linked with a number of clubs in recent months.
Southampton are reported to be monitoring developments and he was previously touted for a possible move to Everton.
He has been with Norwich since the East Anglian club snapped him up along with his twin brother Josh in 2006.
It is understood the player has indicated his willingness to hear what Newcastle have to say as manager Rafael Benitez attempts to secure a third summer signing, but that the two clubs had markedly different valuations.
Benitez, whose frustration has been clear in recent weeks, will hope for good news with his wish-list still far from being fulfilled.
The Spaniard has made no secret of the fact that he believes the squad he guided to promotion last season will need significant strengthening for life in the Premier League.
Armed with funds estimated at somewhere between £75million and £100million, Benitez had hoped for swift progress, but to date only Chelsea winger Christian Atsu, who spent last season on loan at St James' Park, and Eibar defender Florian Lejeune have arrived.
Owner Mike Ashley has promised Benitez "every penny the club generates" from promotion and player sales to re-invest and there is sure to be a sizeable turnover with Florian Thauvin having already completed a permanent move to Marseille, Vurnon Anita to Leeds and Haris Vuckic to Twente.
Karl Darlow, Grant Hanley and Daryl Murphy in particular have their suitors and things appear to be finally starting to move as the club prepares for their first pre-season friendly at Hearts on Friday evening before heading to Ireland for a training camp.