Last season the 21-year-old made 28 appearances for the club across all competitions, netting three goals while assisting six times.
The winger is down the pecking order in the Blues team and only sees limited action because Chelsea manager Thomas Tuchel has several options up front.
The 21-year-old has requested to leave Chelsea in the transfer window in order to find regular playing time.
Newcastle want Hudson-Odoi and have asked Chelsea about him, while a number of other clubs are also keen.
Chelsea will not allow the winger to leave on a permanent basis but will assist with wage contributions if Hudson-Odoi wants to join a team who are unable to meet his £150,000-a-week salary.
As his transfer negotiations are at an advanced stage, Hudson-Odoi was withdrawn from Chelsea’s Under-21 match against Fulham on Monday.
Eddie Howe’s side are eager to add additional alternatives in the final third but so far have been unable to do so as the transfer window nears its conclusion.