Trafford, 23, returned to Manchester City last summer expecting to be first choice, but the late arrival of Gianluigi Donnarumma from Paris Saint-Germain left him sidelined for the majority of the campaign. His Premier League appearances were extremely limited as a result, despite impressing when called upon in cup competitions.
Aston Villa, Liverpool and Chelsea have all previously been credited with interest in the England international, but Newcastle United are now understood to be in the strongest position of any club to complete a deal.
The Magpies had already attempted to sign Trafford before City activated a buyback clause to bring him back from Burnley last summer. Their determination to land him this time around is said to be strong, and City are open to a sale.
Newcastle have already signed young goalkeeper Ewen Jaouen this summer, but he is viewed as a development option rather than an immediate first-choice solution. Trafford represents the senior arrival the club wants.
Trafford is currently with England at the World Cup and is expected to consider his options once the tournament concludes, with his future at City widely accepted to be over after a season that did not unfold as he had anticipated.
Newcastle's interest in Trafford is not new — they attempted to sign him before City exercised their buyback clause last summer to bring him back from Burnley, where he had impressed across two seasons. That sequence of events left Trafford expecting to compete for the number one role at the Etihad, only to find Donnarumma's arrival change the picture entirely.
His Cup final appearances showed he remains a capable goalkeeper at the highest level, and at 23, the need for regular football is real. Newcastle's goalkeeper situation — with Nick Pope's future uncertain — gives Trafford a clear pathway to first-team football that City cannot currently offer him.