The Sunday Telegraph reports that the club will finalise an agreement worth £8 million a year within the next fortnight.
The deal will begin from the start of the 2013/14 season and last for three years.
While Newcastle fans will welcome the injection of cash, they may wince at their St James' Park home being renamed the Wonga Stadium.
In 2009 owner Mike Ashley rechristened it Sportsdirect @ St James' Park after his own chain of sportswear stores - a move that provoked considerable anger among supporters.
Last year the ground, Newcastle's home since 1892, became the Sports Direct Arena.
Wonga offers short-term loans at very high interest rates. It currently has a shirt sponsorship deal with Blackpool.
TEN MORE FUNNY STADIUM NAMES
Pizza Hut Park - Texas, USA
Nicknamed "The Oven" by fans of the resident FC Dallas MLS team. If the players turn up 30 minutes late, you get your ticket for free. Sadly, the deal passed its sell-by date in January 2012
KitKat Crescent - York, England
York City 'had a break' from their usual "Bootham Crescent" name for a five-year period from 2005-2010.
Wankdorf Stadium - Berne, Switzerland
Wankdorf Stadium? Home of the Young Boys of Berne? Must. Avoid. Obvious. Jokes.
Gaylord Entertainment Center - Nashville, USA
Now renamed the more acceptable Bridgestone Arena; but from 1999-2007 those big, nasty, butch hockey players from the Nashville Predators ensured it was never easy to come away from the Gaylord Entertainment Center with a result.
Middelfart Stadium - Middelfart, Denmark
The 'atmosphere' at this ground is always said to very intimidating.
Hotto Motto Field - Kobe, Japan
We won't dwell on this baseball stadium's name for too long. After all, it was called the "Yahoo! Baseball Stadium" between 2003-2004.
Dick's Sporting Goods Park - Colorado, USA
The home of the MLS side the Colorado Rapids. Arsenal fans beware though, they are owned by Stan Kroenke, one of the Gunners' main shareholders. That deal with Emirates won't last forever you know!
Bargain Booze Stadium - Northwich, England
Witton Albion changed the name of their Wincham Park ground for a couple of seasons to this doozy...or should that be boozy?
Mitsubishi Forklift Stadion - Almere, Netherlands
Well, if the fans of Almere City aren't able to lift the roof?
Arnold Schwarzenegger Stadium - Graz, Austria
Local team Strum Graz named their stadium after their city's most famous son, only to then revoke it in 2005 when Arnie refused to stop an execution as governor of California.
- Gaylord Entertainment Center