Gallagher’s future at Chelsea is in doubt as it is possible he could leave Stamford Bridge in the current window.
The midfielder is claimed to have all three paths of staying on at Chelsea, going on loan and moving permanently open to him.
The Blues have made a host of signings and could yet land Enzo Fernandez from Benfica in what would be another competitor for Gallagher.
Newcastle have been linked with Gallagher, but it is suggested Chelsea are not likely to favour the Magpies as a destination as it would mean strengthening a direct rival.
Instead, Chelsea would rather see the 22 year-old end up at Crystal Palace or Everton, with teams that are in the bottom half of the table and not direct competitors.
Gallagher has missed just two games for Chelsea in the Premier League this season and has made 25 appearances in all competitions.
It remains to be seen what happens with Gallagher this window but it appears Newcastle’s path to bringing him in has become tougher.