Chelsea will give Newcastle one week after the end of the season to agree a permanent deal for Christian Atsu, according to ESPN.
The Ghana international has failed to make an impact at Stamford Bridge but has enjoyed a more successful loan spell with the Magpies and a fee of around £6.5m is being touted.
Christian Atsu has impressed when called upon this season, scoring four goals and assisting three more in his 30 appearances in the Championship for Newcastle, but only 13 appearances coming as a starter.
Atsu has spent the last four seasons out on loan after joining Chelsea from Porto in the summer of 2013.
The 25-year-old is entering the final year of his contract at Chelsea and the club are considering offering him a new deal, but sources have said that Atsu is keen to be playing regular first-team football at this stage of his career.
A number of other clubs are monitoring Atsu’s situation and are ready to move for him if Newcastle fail to take up their option in time to sign the winger.