The Sun says the Canadian winger, 22, is out of contract at Blackburn, although the Lancashire club would be entitled to compensation due to his age.
German outfit Borussia Monchengladbach had seemed the most likely destination for Hoilett but a switch to Newcastle could now be on the cards.
Toon boss Pardew said: "It seems like there is an imminence to him moving, wherever he ends up.
"We are keeping a close eye on that because he is a good player."
QPR are also in the race to secure Hoilett's services.