The England international is set to undergo a medical and discuss terms, having told friends he is ready to sign a five-year contract.
Shelvey is set to take Steve McClaren's January spending to £17m following confirmation of Bordeaux winger Henri Saivet's £4m move yesterday.
The Daily Mail claim Liverpool will bank around £3.6m from the deal after inserting a 30 per cent sell-on clause when they sold him to Swansea in 2013.
Shelvey is set to replace Chieck Tiote in the Newcastle squad as he heads to China.
Tiote is close to sealing an £8m move to Shanghai Shenhua after reportedly agreeing a £67,000-a-week deal after tax.
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