It is understood Villa are open to selling the Brazilian, who has one year remaining on his contract, this summer. That is despite the 24-year-old missing just one match under Steve Gerrard last season.
The Magpies have already signed a player from Villa this summer - Matt Targett, who joined on a permanent basis for £15million following a successful half-season loan spell at St James’ Park.
And United have been told to continue doing business with Villa by weighing up a move for ex-Manchester City midfielder Luiz.
Campebell told Football Insider:“I like Douglas Luiz.
“He is a strong player and is somebody who is young but Premier League proven.
“It is about the squad though. Newcastle are looking to be that team who step up and challenge for European spots etc. If you are going to be that team you need a squad. They have not had the squad.
“There was a real lack of investment previously. They have got the new ownership now and Eddie Howe, who has done a brilliant job so far.
“Douglas Luis is a player who could really go up there and excel. He is one of those guys who is a seven out of 10 every week.
“He’d be a great option alongside (Bruno) Guimaraes.”
Newcastle have enjoyed a busy start to this summer’s transfer window with Targett joined by Nick Pope and Sven Botman on Tyneside.