, Smith was not aware that the two clubs were in talks and only found out on Wednesday.
Smith was signed from Manchester United for £6 million 18 months ago, but has failed to make much of an impact after suffering an ankle injury.
The 28-year-old has spent the last three months trying to get fit, after undergoing an ankle ligament operation, and feels betrayed that, with full fitness approaching, he is now being sold.
Smith does not want to leave St James' Park but has reportedly been told that he will not play for the club again if he does not accept the move.
Meanwhile, a report in the Mirror claims Newcastle are trying to hijack Blackburn's bid to sign Marseille defender Gael Givet.
Givet has been invited to join Rovers on trial, and Marseille will allow him to go on loan with a view to making it permanent.
However, Newcastle have been keeping tabs on Givet themselves and are prepared to take on the 27-year-old without giving him a trial first.