The Brazilian midfielder, who had interest from Arsenal and has been watched by Paris Saint-Germain and Manchester United, will join the Magpies for 33m plus add-ons from Lyon.
He is set to undergo the medical on Friday before finalizing the move to join new signings Kieran Trippier and Chris Wood at St James’ Park.
The 24-year-old, who has three caps for Brazil, offers Newcastle a quality ball-retaining option as a deep-lying midfielder.
The Magpies are also chasing a deal to sign Brighton’s Dan Burn before the end of the January transfer window.
Elsewhere, the transfers continue to roll in ahead of deadline day with Aston Villa remaining busy this month.
The Villans have landed Callum Chambers from Arsenal as Steven Gerrard revamps their squad.
Chambers, who joins on a three-and-half-year contract, follows Philippe Coutinho, Lucas Digne and Robin Olsen as new signings at Villa Park.
In Italy, Germany international full-back Robin Gosens has joined champions Inter Milan from Atalanta. Gosens joins on a four-and-a-half-year, deal but on loan with an obligation to buy.