The Sun says the Magpies aim to make ex-Spain winger Capel the best-paid player in League Two history.
The stunning figures are tempting 30-year-old free agent Capel.
He has been looking for a club since leaving Belgians Anderlecht in August.
Now he is expected to accept and join this week.
Capel's advisers had been talking to clubs in France and Eastern Europe — but they have been blown away by the terms on offer by Notts County, who are desperate to clinch promotion.