Aston Villa are set to hijack the deal for the 20-year-old midfielder.
Manzambi scored three goals at the World Cup this summer with Switzerland reaching the quarter-finals.
According to leading journalist Fabrizio Romano, Villa are set to match the £60mil fee.
The Villans see Manzambi as a replacement for Amadou Onana who tore his ACL at the World Cup.
Newcastle had reached a club-to-club agreement with Freiburg but were waiting on personal terms.
The Switzerland star featured against Villa in the Europa League final win over Freiburg.
