The Daily Mail says Newcastle are weighing up a £25million offer for the Frenchman.
The Hoops had initially set a price of £40million but a deal could be done for an initial £25million plus another potential £10million in add-ons.
And Edouard and his representatives view Newcastle as an attractive next step.
Arsenal are also being linked with the France U21 international.
But the striker wants to be a first-choice rather than risk being a bench option at one of the Premier League's 'big six' clubs.