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Chris Hughton was sacked on Monday after a run of five games without a win, despite leading Newcastle to promotion last season and taking them into midtable this season.
The club is preparing to interview two or three candidates, with owner Mike Ashley looking to award a heavily-incentivised contract with a low basic salary.
Former West Ham United manager Alan Pardew has emerged as favourite for the role, despite Martin Jol's resignation from Ajax on Monday.
That led to speculation that the former Tottenham manager was set to take over, but he is thought to be exhausted and looking for a break after a difficult time at Ajax.
Jol, anyway, is close to Hughton, his assistant at Tottenham, while Paul Kemsley, a former Tottenham vice-chairman and a close friend of Ashley, was said to be heavily influential in Jol's sacking at White Hart Lane.
Pardew has let it be known he would be interested in the role, but former Charlton manager Alan Curbishley is understood to be less keen.
Alan Shearer, manager when Newcastle were relegated two seasons ago, has ruled himself out of the race, while Martin O'Neill is thought unlikely to want t go to a club where he would not have complete control.
Reserve coach Peter Beardsley, who is close to Ashley, took training on Tuesday and will be in charge in a caretaker capacity until a full-time appointment is made.
