The Jets have been monitoring the situation of the New Zealand international, who finished up the season with the Gold Coast after returning from a disappointing spell in Turkey with Genclerbirligi.
Smeltz is currently a free agent and is wanted by a few rival clubs but the Jets have withdrawn their curiosity after they could not meet his asking price.
Newcastle coach Branko Culina admitted that his club would not pay as much for the former Wellington Phoenix star as another potential high-quality striker.
“That was a ceiling for Shane Smeltz, but it might not be our ceiling for somebody else,’’ Culina told the Newcastle Heral.
‘‘(Owner) Nathan (Tinkler) and the club haven’t said, ‘That’s all we’re going to spend no matter who it is.’
‘‘It depends on who it is and whether we think he is the right player for us.’’