The 48-year-old, who guided Newcastle to their first trophy in 70 years by winning the Carabao Cup last year, has informed the club that he wants to take a break from football.
According to The Athletic, Newcastle are in advanced talks to replace Howe with Matthias Jaissle, who is the head coach of Saudi Pro League club Al-Ahli.
Jaissle, 38, joined Al-Ahli in three years ago and has won back-to-back Asian Champions League trophies.
‘We don’t want to lose our best players,’ Howe said.
‘That is an obvious statement to make, losing those big two is painful for us and difficult for us.
‘For me it has been another challenging summer so far. We are always trying to do our best for the football club long and short-term and try to get the squad in the best place.’
On Wednesday night, Newcastle were beaten 4-1 by Championship side Bristol City in a pre-season friendly at Ashton Gate.
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