The 23-year-old has been outstanding for Sporting Lisbon during the 2017-18 season, where he scored 16 goals and layed off 20 assists in all competitions for the Portuguese club.
However, he is one of the players who could leave the club in the summer. He is one of those players looking to terminate their contracts this summer after a training ground attack.
Thus, Fernandes, who made two Group B appearances at the World Cup for Portugal, could be sold at a cut-price deal as a compromise.
However, the Magpies are likely to face strong competition from West Ham with Tottenham Hotspur also reportedly keen.
The Hammers have had a bid worth £25 million on the table. The Hammers are also interested in signing Felipe Anderson, and Sky Sports suggests that they will go for either Fernandes or the Lazio winger.