It is understood the 54-year-old former England and Derby County boss has concluded talks following a short holiday and just needs to formalise his contract with an announcement expected later in the day.
The appointment of a new manager at Newcastle moved a step nearer completion with the official confirmation on Wednesday morning that head coach John Carver and coach Steve Stone have left the club.
Carver, who lost 13 of his 20 games in charge, said: “It has been a privilege to serve as head coach of this great football club.
“The fans and the region deserve a successful team and both myself and my support staff worked very hard with the squad that was available to us.”
McClaren has been the long-term favourite to take over from Carver, who left St. James’ Park after discussions as to whether he could revert to his former position as assistant coach reached impasse.
McClaren had been in charge at Derby since September 2013 but was sacked by the Sky Bet Championship club at the end of the season having failed to secure a place in the play-offs, finishing eighth in the table after an embarassing final day defeat.
Former FC Twente boss McClaren was linked with the Newcastle job when Alan Pardew left in January and was also under consideration at West Ham after Sam Allardyce left at the end of the season.
Patrick Vieira, an elite development coach at Manchester City, had also been under consideration by Newcastle but talks were quickly concluded with Viera remaining at City.