The England striker is said to have rejected the chance to join Middlesbrough, while Sunderland, Everton and West Ham have all been linked with a move.
But the Manchester Evening News claims that Smith will plump for Newcastle, despite the fact that he will have to fight Michael Owen, Obafemi Martins, Mark Viduka, Shola Ameobi, Albert Luque and Andy Carroll for a place in the team.
It certainly seems like a curious move for Newcastle, who desperately need reinforcements at the other end of the pitch but seem to have an embarrassment of riches up front.
They do apparently want Senegal defender Boukary Dramé for the problem left-back spot but still need at least one more central defender.
Kieron Dyer will leave Newcastle, with his departure hastened by the abuse he suffered from Toon fans after the weekend's friendly victory over Juventus.
West Ham are his most likely destination, although Tottenham and Manchester City are also said to be interested - though his £80,000-a-week wages would point to Upton Park.