The Magpies have made five acquisitions thus far this summer and have now designated Guehi as their primary target as the transfer window approaches its final few weeks.
Eddie Howe is eager to expand his center-back options, as his Newcastle team will commence the new season without the services of injured tandem Sven Botman and Jamaal Lascelles.
Palace has rejected Newcastle's second offer for Guehi, estimated to be worth approximately £50 million.
According to Sky Sports News, the Magpies have submitted a third proposal, which includes a £55m upfront payment and £5m in add-ons. However, Palace has once again rejected the offer.
Newcastle is unwilling to accept defeat in its pursuit of Guehi.
Newcastle is also exploring alternatives if the deal fails, as the Eagles reportedly seek a fee of at least £65m. Negotiations between the two clubs are reportedly ongoing.
Steve Parish, the chairman of Palace, addressed the rumors regarding Guehi's future earlier this week. He stated that Newcastle must pay "superstar money" to acquire "a superstar player."
"It is not yet at the stage where we must decide." We are delighted to have him and would gladly retain his services.
If another individual wishes to acquire him, they must create an exceptionally challenging situation for us. During an interview with Sky Sports News, Parish stated, "He is a generational talent."
Nevertheless, Newcastle are reportedly unfazed by Parish's remarks and are optimistic about securing Guehi's transfer to St. James' Park before the transfer window closes on August 30.
Guehi's remaining contract length is believed to be a critical factor in the negotiations between Palace and Newcastle.
The England international is 18 months from discussing pre-contracts with clubs abroad and two years away from departing Selhurst Park on a free transfer.
In the face of rumors regarding his future, Guehi has maintained that he is content with his current situation at Palace and has disclosed that he is "so relaxed and chilled."
Palace future: Guehi "relaxed and chilled"
The 23-year-old, who refrained from discussing Newcastle or a potential transfer, told BBC Sport:
"I would resolve everything immediately if I had a magic wand, but I do not." It is impossible to regulate any external disturbance. I concentrate solely on football and strive to perform at my highest level.
"I am eager to continue playing for an extended period." If I could perform until forty, that would be fantastic.
I have ceased my efforts to ascertain my ultimate career destination, as it is possible to become excessively preoccupied with such matters.
"I have set a few objectives that did not quite pan out, asserting that I should be in this position at this age." That is too presumptuous. "Everyone embarks on their own journey."
Guehi responded to Parish's "superstar" remarks, stating, "It is genuinely touching for someone of Parish's stature to express such sentiments.
I am uncertain as to whether I am a generational talent or a sensation, but I am incredibly appreciative of the compliments.
"I am extremely appreciative of the club." This club allowed me to compete in the Premier League, an ambition many young people hold.
It is truly remarkable that they have maintained their faith in me and continued to support me, thereby allowing me to grow and express myself.
Since joining Palace from Chelsea, Guehi has appeared in 111 matches across all competitions throughout the past three seasons.
Manager Oliver Glasner is optimistic that the Euro 2024 star will remain at the club this season.
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