Talks between the two clubs have progressed over the last couple of days but the St James’s Park club want to make sure they have a replacement lined up before the deal is finalised.
Hammers manager David Moyes is determined to strengthen the centre of his midfield, and Londoner Shelvey, 25, who has been in and out of Rafa Benitez’s Newcastle side this season, is at the top of his list of targets.
Shelvey is on an £80,000-a-week contract at Newcastle but West Ham are ready to spend this month to ensure that Moyes can continue his task of wresting the club away from the Premier League relegation zone.
Moyes is also looking at alternatives to Shelvey, with Arsenal’s Francis Coquelin, Watford’s Etienne Capoue and Stoke’s Welsh international midfielder Joe Allen also targets as well as Anderlecht’s Leander Dendoncker.
Meanwhile, West Ham had to settle for a replay after being held 0-0 at Shrewsbury in the third round of the FA Cup.
Moyes was upset with the Hammers commitment and said after the game: “I don’t think we showed any quality and the biggest disappointment is I didn’t think we showed enough steel.
“When you come to places like this, you have to show yourself physically, that you can battle and compete.
“I didn’t think we did that at all and that was the worst thing about it.”