The 28-year-old is available for a knock-down fee as he enters the final year of his contract at Goodison Park, and the Merseysiders are keen to flog him this summer.
Crystal Palace also want McCarthy, but Magpies boss Steve Bruce wants to beat them to his signature as he looks to boost his ranks in the middle of the park.
The talented Irish powerhouse will be a massive addition to the Newcastle midfield if snapped up, provided he can stay fit.
McCarthy has constantly struggled for fitness since 2016-17, spending a total of 662 days on the treatment table since then due to long-term injuries.
The Everton man only featured once across all competitions for Marco Silva’s side last season, and Newcastle will be taking a huge risk and gamble going after him.
However, he brings more verve, bite and experience to the team if signed, and another chance to prove his worth could be all it takes for him to return to the top of his game once again.
Given the Toons’ need to get it right in the summer transfer window as they look towards a probable relegation and safety battle, though, Bruce can’t afford to sign a player that won’t be able to contribute to the cause, and it will be interesting to see what his final decision on McCarthy is.