The 23-year-old defender struggled to get game time at Manchester United last season despite impressing in a Champions League win over Paris Saint-Germain.
He has a year left on his contract but it has effectively two years to run as Manchester United have an option to extend the deal.
Newcastle are interested in signing him on a loan deal, but it has been claimed that the Magpies are struggling to agree on a loan fee with Manchester United, who want £5m to cover the entire period.
But Newcastle are set to face stiff competition from Aston Villa, who want to take Tuanzebe back to Villa Park.
The defender had a fruitful loan spell at Villa in the 2018/19 season when he helped them to get promoted.
Aston Villa are again keen on the centre-back and would prefer to sign him on a permanent deal.
It remains to be seen whether Manchester United would prefer to loan him out rather than cutting the cord with Tuanzebe permanently.
If the Red Devils opt for a permanent sale though, it is unclear if Newcastle can go head to head with Aston Villa for Tuanzebe.
The defender wants regular football and is likely to seek guarantees over game time before agreeing on a move.