The 25-year-old was a reported target of Newcastle 12 months ago. However, the interest frizzled out following the Magpies’ demotion to the Championship.
Gray has one year left on his contract, and he is one of the names being discussed for a potential new signing if Newcastle are able to return to the Premier League.
Rafa Benitez is keen to bolster his attacking department, and wants to add one or two quality strikers.
Gray, who scored nine goals in 26 appearances this season in all competitions, is yet to agree to a new contract with the Clarets.
His situation is a delicate one. Burnley would love to retain his services for years to come, but his contract situation may force them to cash in during the summer or risk losing him for much less in January or potentially nothing at the end of the campaign.
Newcastle may decide to cash in on Aleksander Mitrovic who is attracting interest from Italy and Germany. The Magpies are top of the Championship, tied with Brighton, and are only ahead by a better goal difference.
Burnley, on the other hand, are comfortably placed 12th in the Premiership, despite losing 2-1 to Liverpool on Sunday at Anfield.
Gray would be a quality signing for Newcastle, but Burnley will demand a high transfer fee should they decide to sell him in the summer.