That’s according to The Sun, who claim Eddie Howe’s side “are strong favourites to complete a deal within days”.
Hudson-Odoi was set to feature in the Blues’ development squad clash with Fulham on Monday night however was withdrawn prior to the game.
It was then reported by the Evening Standard that loan interest in the 21-year-old had intensified over the last 24 hours and that temporary exit was likely.
Premier League clubs Southampton and Leicester City are believed to have lodged enquiries but it’s Newcastle that are supposedly leading the race.
Any rumoured incomings from Chelsea were heightened on Sunday when co-owners Amanda Staveley and Mehrdad Ghodoussi were invited to watch the 2-2 draw against Tottenham Hotspur as guests to Behdad Eghbali.
Newcastle have also been linked with Conor Gallagher, Armando Broja and Christian Pulisic.
Hudson-Odoi hasn’t played a Premier League since January after spending the second half of last season on the sidelines.
When asked about Hudson-Odoi’s future over the weekend, boss Thomas Tuchel not rule out a potential departure.
“In general, nobody is for sale and everybody is for sale,” Tuchel said.
“It depends on what the player wants, how bad the player wants it, what we think, who is ready to pay a certain amount of money.
“Then, maybe, everybody is for sale. But for Callum, it’s the same. He competes. He had a long-term injury and long-term problems to overcome from which he suffered.
“He has still a way to go to live up to his potential, because the potential is huge.
“Having Raheem in can maybe give him the extra boost to step up and see life, what is needed in these kind of positions to reach the level that he can reach, that he wants to reach.
“But at the moment he is our player and he needs to fight, fight, fight.”