Meanwhile, Monaco's Italian full-back Antonio Barreca is also set to join the northeast club, in a loan deal for the rest of the season ahead of the January 31 transfer window deadline.
After doing his old club a major favour in their title bid, Newcastle's former Liverpool boss Rafa Benitez said: "It's nice to help Liverpool, fine, but saying that I don't want to disrespect Manchester City.
"I can't talk about the transfer window but we're progressing with some names and if that happens it will be good news for us. The main thing is that we sign what we need, the price doesn't matter and it's not about breaking records, but the fact that it will be someone to help us to stay in this division."
The Spaniard added: "We didn't get off to the best of starts with their goal, but we fought hard and worked for each other until the last minute and earned our rewards with a win that we can hopefully build on."