The 24-year-old is set to be in today’s Community Shield squad against Liverpool, but is expected to complete the move to St. James’ Park afterwards.
Newcastle still need to reach an agreement with Arsenal and finalise personal terms with Holding, but they are clearly huge favourites to land him.
The deal isn’t likely to come with an option to buy, but landing the former Bolton Wanderers man will be a huge boost for Steve Bruce’s side who have limited funds to spend this summer.
The Gunners man featured in 18 games across all competitions last season, and he is expected to see plenty of playing opportunities at St. James’ Park.
Holding can play at both centre-back and right-back, and such versatility will come handy at Newcastle as they look to impress next season.
He has also been linked with Leeds United as head coach Marcelo Bielsa looks to strengthen his backline following Premier League promotion and the loss of Ben White, but it appears that he will be plying his trade on Tyneside when the new Premier League campaign kicks off in a fortnight.