Eddie Howe’s side have been trying to sign Jesse Lingard from Manchester United, but have become frustrated due to a lack of progress.
They are eyeing Alli as an alternative and are now poised to open discussions with Tottenham to take him to St James’ Park.
Alli has failed with repeated attempts to revive his Tottenham career and the club are tipped to be willing to open the door for him to depart if the deal is right.
Newcastle will hope to be able to find common ground with Tottenham, while also persuading Alli to make the move.
The Magpies gave their survival hopes a shot in the arm on Saturday by edging out Leeds United 1-0 at Elland Road.
They do not play again until after the transfer window has closed and will hope to have a raft of new signings through the door by that time.
It remains to be seen if All is one of the fresh faces at the club.
