Welbeck has one year left on his contract and talks over a renewal have not resulted in an agreement.
Arsenal boss Unai Emery has brought in five new players and now needs to trim his squad to make space for further fresh faces, with Welbeck among the handful that could leave.
As a result of his involvement with England at the World Cup, Welbeck is not expected to return to Arsenal until the start of August.
But TEAMtalk say Newcastle are ready to make a loan offer for Welbeck, although Arsenal would prefer a permanent deal to avoid losing him on a free next year.
Newcastle are searching for a striker but don’t have much money available for transfers.
So far in the transfer window, Newcastle have signed Martin Dubravka for £4million, Ki Sung-yueng on a free and Kenedy on loan from Chelsea.
Earlier this month, Toon manager Rafa Benitez admitted he may need to sell before he can buy.
He said: “It’s not necessary to say anything. As soon as the price goes a little high I know we can’t buy them.
“We have to be realistic, maybe sell some players and buy some players. It’s normal for us to think we have to be like that. The point for us is we have to adapt.
“That is the situation. Are we happy with that? Obviously not 100% but we try to do our best to be strong enough and we can compete.”