The Magpies are in talks with the 26-year-old, who has also been linked with a host of Premiership clubs.
Smith who could even make his Newcastle debut alongside his former Leeds team-mate Mark Viduka in a pre-season friendly against Sampdoria on Sunday.
The club are hopeful of beating off competition from their north-east rivals Middlesbrough and Sunderland, as well as the likes of Everton and Spurs, by attracting the £6m-rated Smith to St James' Park.
Smith has two years left on his current deal but is expected to be sold before the start of the season.
Toon boss Sam Allardyce told the Evening Chronicle: "I am hoping that the Alan Smith deal will go through. He has other clubs to consider and I am hoping we are top of his list."