A-League club Melbourne Victory say the 21-year-old A-League Young Player of the Year has agreed a three-year deal with the London club.
Although Lawrie Sanchez has been on the trail of N'Zogbia for the last month, his valuation of the player has not matched Newcastle's.
The new Fulham boss has been busy in the transfer market this summer and may have run out of funds.
N'Zogbia has a bit of a reputation, and that was pointed out to Sam Allardyce as soon as he took over at St James' Park. So much so Big Sam had a 'clear the air' talk with the young Frenchman.
It is thought, however, Allardyce would welcome a deal so it would add money to his transfer kitty, but Fulham will not pay Newcastle's asking price.
N'Zogbia has been tried at left-back, Newcastle's troubled position, during pre-season friendlies with limited success.