Alli was left out of Tottenham Hotspur’s squad for their 2-0 defeat at Chelsea on Sunday evening in a clear signal that he is out of favour with boss Antonio Conte.
Tottenham are tipped to be willing to loan Alli until the end of the season and Newcastle are keen, having grown frustrated in their efforts to sign Jesse Lingard from Manchester United.
However, the Magpies could face competition from Everton for the midfielder.
The Toffees have also shown interest in Alli and may make a bid to take him to Goodison Park, although they are in a situation of managerial flux.
Duncan Ferguson is at the helm in a caretaker basis and Everton are holding talks with managers as they look to make an appointment.
Signing Alli on loan though may not commit the club to a permanent deal and reduce the risk of the club’s new boss being saddled with a player they do not want.
Both Everton and Newcastle have relegation worries and they are due to meet in their next Premier League game, at St James’ Park.
