The 48-year-old has emerged as the favourite to become the new Newcastle boss after he held talks with the new regime at St. James’ Park earlier this week.
Fonseca’s agents have been in constant touch with Newcastle and he is believed to be asking for a three-year contract from the club.
The Portuguese is reportedly expecting Newcastle to make a decision next week and is believed to be convinced that he is getting the job.
But it has been claimed that it is far from a forgone conclusion that Fonseca will become the Newcastle manager.
Newcastle are also planning to conduct interviews with other candidates after they held talks with Fonseca.
The Magpies do not want to rush into making a call and names such as Eddie Howe, Frank Lampard, Roberto Martinez and Lucien Favre are still in the fray.
While Fonseca might be the favourite, Newcastle appear to be some way away from being completely convinced about appointing him to set off the new era at St. James’ Park.