The 26-year-old, who had one year remaining on his current deal, is poised to be rewarded for reviving his career at St James’s Park last season.
Murphy initially struggled to live up to expectations when Rafa Benitez signed him for £12million from Norwich City in the summer of 2017.
He spent the second half of Benitez’s final season in charge on loan at West Bromwich Albion before Steve Bruce loaned him to Sheffield Wednesday.
Following a successful one-year spell at Hillsborough, Murphy was handed an opportunity to impress Bruce in pre-season and he duly delivered.
Murphy played 26 times in the Premier League last term and scored two goals as he excelled in his new-found right-wing back role.
However, as per the Daily Mail’s Craig Hope, Murphy is expected to commit his future to his boyhood club.
Speaking to BBC Newcastle last month, Bruce was hoping Murphy would sign a new deal on Tyneside.
“I sincerely hope that we tie Jacob Murphy down,” the 60-year-old said. “He’s been a big plus this season after spending a couple of years on loan.
“He’s played a big part in the season. He’s had, for him, a really good season where he knows now that he belongs in the Premier League. I’ve been very very pleased with him.
"Moving forward, I’d love to see him at the club. It’s what we want: young, hungry, determined to do well – he ticks all of those boxes.”