The Evening Chronicle says Newcastle are making a move for Savage.
The Magpies have offered the 19-year-old a three-year contract and Toon sources say the deal could be confirmed soon, however, he is expected to be part of the Under-23 set-up and will work with Chris Hogg and Peter Ramage's second string.
Savage has not made a first-team appearance for the Reds and featured in the EFL Trophy and Premier League 2 for Liverpool last term.
United though have offered a professional contract for the player and will expect him to challenge for the first-team squad for the duration of his deal.
Savage only penned a professional deal with Liverpool in June 2020 after being part of the Kop side that won the FA Youth Cup in 2019.