The two parties have resumed discussions which stalled earlier this summer after the clubs had agreed a fee.
The Magpies have to date made only one summer signing with Loic Remy having arrived on a season-long loan deal from QPR, although he is yet to play for the club which initially tried to sign him in January because of a calf injury.
The news comes a day after Lyon president Jean-Michel Aulas was quoted as saying the France international had his heart set on a move to Germany.
Newcastle are long-term admirers of the 28-year-old frontman, who has also attracted interest from Marseille, although they have as yet been unable to make a breakthrough in a protracted saga.
Manager Alan Pardew has been desperate to boost his striking resources ever since Demba Ba's departure for Chelsea in January and with Senegal international Papiss Cisse currently becalmed in front of goal, his need is growing by the day.
Remy was a threat for relegated QPR during the second half of last season and Pardew is hopeful he will be involved from the bench in Saturday's Barclays Premier League clash with Fulham.
However, the addition of another goalscorer would significantly strengthen his hand.
- Sports & Recreation
- Loic Remy