The Scotland international only joined the Magpies last summer from Blackburn Rovers, but the arrival of Florian Lejeune has rendered him surplus to requirements under Rafael Benitez.
According to The Chronicle, Benitez offered the 25-year-old to Birmingham City, but Bet Victor have their Championship rivals Leeds as favourites to sign him this month.
Further back, Sheffield Wednesday and Burnley - both of whom have been linked - are 5/1 and 6/1 respectively.
It remains to be seen whether Leeds will bring in another centre-back before the window shuts. Thomas Christiansen has four capable centre-halves - Pontus Jansson, Matthew Pennington, Liam Cooper and Conor Shaughnessy - on his books but Leeds have been linked with the likes of Aden Flint, even after signing Pennington.
One club who might need a centre-back in the coming days is Sunderland, and the Black Cats, who could lose Lamine Kone before September, are 8/1 to bring him to Wearside.
Hanley wouldn't be the most popular person around that part of the country if he were to join Sunderland, but geographically it would make sense.
He might've cost Benitez around £5.5 million last summer according to The Daily Mail, but Newcastle have to sell players before they can buy over the next week or so, so the Spanish manager might be willing to take a cut-price deal just to offload him.