The Toon hierarchy will not allow Simpson to go into next season with his future still up in the air.
And they would rather cash in now than risk him leaving for nothing in June 2013. Newcastle boss Pardew said: "If we can't reach agreement, he'll have to move on.
"Davide Santon is desperate to play and is ready now. It's a delicate situation that's as dangerous for Danny as it is for us."