Xisco has spent the season on loan at Racing and the former Spanish Under- 21 internationalis keen to stay in his homeland.
But much will depend on whether or not Racing stay up.
The 23-year-old has scored four goals this season with the club one point above the relegation zone and the season ending this weekend.
Racing regard Xisco as a player with potential and they would be keen to do a deal with Newcastle.
The Magpies have accepted they will never recover the £5.7m they paid for him two summers ago. In fact, more than likely, they would be willing to let him leave for nothing if it meant his wages were no longer the club’s concern.
There has also been interest shown in him from Tenerife and Xerez.