The Brazil international has been strongly linked with a move to the North-East outfit over recent months due to his friendship with Bruno Guimaraes.
The Magpies are said to have made a £34m move for Lucas Paqueta, but Media Foot are reporting that Arsenal are rivalling Newcastle for the 24-year-old’s signature.
The report adds that Arsenal manager Mikel Arteta is keen on the attacker and has proceeded with attempts to lure Paqueta to north London before the clubs begin negotiations over a transfer fee.
Paqueta is reportedly open to the idea of leaving the French outfit in the coming weeks, which would bring an end to his two-year spell in Ligue 1.
The Brazilian was part of Les Gones that finished down in eighth place in the Ligue 1 in the 2021-22 campaign.