The Daily Mail says the former England midfielder has been offered a lifeline and a coaching role with the club's Academy by his former international and Newcastle team-mate Peter Beardsley.
Gascoigne said: "I am really well, fit and healthy. I am training really hard with the kids, Pete picks me up and we go into training which is good and it is nice to be training again.
"I am just enjoying playing football and every day just keeping myself busy. Pete has been fantastic with me, making sure that I am ok and that I have got bread and milk in the fridge and stuff like that, which has been great. And it has been good to be involved with the kids. Hopefully it will progress with me doing some of my coaching badges again."