HITC Sport understands that the Ivorian midfielder is set to leave the club
The 29-year-old is about to end a five-year stay with Newcastle, in which time he has played 141 games.
Tiote, who had just over a year left on his current deal, has suffered numerous injuries over the past 12 months and has been limited to just 17 starts in the past two seasons.
Now, despite featuring recently under Steve McClaren - Newcastle have opted to accept an offer from Shenhua for around £8 million, which represents a near £5 million profit on the man they signed from FC Twente.
A source told HITC Sport: "Newcastle are very happy with the deal, they have been looking at an exit strategy for Tiote for over 12 months."
Newcastle are also considering whether to allow Florian Thauvin to return to Marseille, just six-months after he joined the club as they have agreed a loan deal to take him to the Stade Velodrome on loan - although McClaren has not yet given the green-light.
However, HITC Sport understands that Newcastle are still hoping to land Andros Townsend this month, at which point they would allow Thauvin to leave - although they still see a long-term future for him at the club.
Newcastle could also still allow Papiss Cisse to leave the club, as like Tiote has interest from Asia - but like with Thauvin his future will depend if they bring another striker in - something the club are looking to do.