A spokesman said: "Newcastle are very interested in Owen. They are following him closely and are showing the most concrete interest," he said.
"However there are other sides showing an interest."
Newcastle themselves revealed their interest in bringing Owen to St James' Park earlier today.
Chairman Freddy Shepherd said: "We have had a discussion with Madrid but won't be commenting further on any speculation."
Owen is known to have spoken with "three or four" Premiership clubs in recent weeks and is keen on a move back to the English top flight, however, Newcastle's problem could be that they will not be playing European football this season, not a great selling point for your club, as you try to lure England's number 1 striker the season leading up to the World Cup finals.
Officially Owen has said he would like to stay at Madrid for the duration of this contract (which expires in 2008), however, it is believed the former Liverpool star would like to return to England.
Owen said: "Knowing the importance of World Cup finals year, Real said that if there was a possible transfer that suited everyone, I had their permission to explore it, but there was no pressure to make any decision that did not suit me.
"This information was conveyed to a small group of clubs and we have until August 31 to see if anything happens.
"Mentally, I am preparing for another season with Real and if I do find myself on the bench at the start of the season, I will do everything possible to force my way into the starting XI and I know I will be given a fair chance to do this."
Owen made just 26 starts for Real Madrid last season scoring 16 goals in the process, as much of his time was spent on the bench