The Japan international has fallen further down the pecking order following the arrival of Callum Wilson, with the former Bournemouth star, Joelinton, Andy Carroll and Dwight Gayle now ahead of him in the pecking order.
With seemingly no place in Steve Bruce’s plans for the season, Muto is on his way out of St. James’ Park in the current transfer window.
La Liga club Eibar have been in talks with Newcastle over a possible loan deal for the 28-year-old and are understood to have reached an agreement.
The Spanish first division club have shaken hands with the Magpies on a deal that will see Muto join Los Armeros on a season-long loan.
It is claimed that the deal does not include an option which would allow Eibar to make the move permanent at the end of the loan contract next year.
Muto joined Newcastle from German side Mainz in 2018 and has two more years left on his contract with the Premier League club.
The Japanese striker made just eight league appearances for Bruce’s side last season and found himself out of the matchday squad on several occasions.