The 16 year-old Ecuadorian hails from the same club as Chelsea star Moises Caicedo.
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Tribalfootball's transfer expert Rudy Galetti is reporting an agreement has been struck between the two clubs for Martinez.
Martinez will move to Newcastle and England when he turns 18.
Newcastle are pushing to close the agreement and have all contracts signed this week.
It will mark a first official signing for Newcastle football chief Ross Wilson (above) since his appointment. Wilson brought in Thomas Federspiel in December as the club’s new global talent scout in Brazil, Colombia and Ecuador to expand the club’s network in South America.