The Daily Express report that Toon boss Chris Hughton is willing to pay £2.5m for the 22-year-old - a figure that appears to have been the main stumbling block in a move to Elland Road.
Newcastle see Hooper as the perfect foil for Andy Carroll, who has been given the famous No.9 shirt at St James Park after his 19 league goals last term.
Hooper notched 30 goals for Scunthorpe last season, having joined the club from Southend United in 2008. He began his career in non-league football with Grays Athletic.