Smith joined Scottish side East Fife last season from Celtic and made 25 league appearances for the club while managing four clean sheets.
Last season, he was one of the youngest senior goalkeepers in British football, and Newcastle’s scouting team took notice of his achievements.
The 19-year-old had a trial with Stoke City before having one with Newcastle’s Under-21 side earlier this summer.
It has been claimed that Newcastle have agreed a five-figure fee with East Fife for the 19-year-old in the ongoing transfer window.
Stoke City were also interested in signing the teenager, but he has opted to move to Tyneside in the hope of establishing himself with Newcastle.
The shot-stopper will now travel south of the border to finalise the switch.
Smith is a product of Celtic youth system but left the club without making any senior appearances for them.
The player is set to become the latest youngster to join the Magpies ranks after Alex Murphy, Jordan Hackett, and Charlie McArthur.