The 18-year-old had been expected to put pen to paper on a new long-term contract at Stamford Bridge before moving to the Eagles on a season-long loan deal.
However, the Daily Mail reports that Newcastle are exploring a deal to sign Hall on a permanent basis from Chelsea.
Eddie Howe is in the market for a new left-back and Hall has emerged as once of his latest targets heading into the final three weeks of the summer transfer window.
Chelsea's Marc Cucurella and Arsenal's Kieran Tierney are also believed to be on the Magpies' radar, although they face competition from Real Sociedad to recruit the latter.
Hall joined Chelsea's academy as an eight-year-old back in 2012 and worked his way through the club's youth ranks before making his professional debut for the Blues in January 2022 under former boss Graham Potter.
The versatile wideman, who can operate at left-back or on the left wing, made 11 appearances in total across all competitions during a breakthrough season in 2022-23, including eight Premier League starts as Chelsea languished to a 12th-place finish.
Hall was named Chelsea's Academy Player of the Year last season and took his opportunity in the first team due to injuries picked up by both Cucurella and Ben Chilwell.
However, Hall faces a battle to gain regular first-team football in the new campaign now that both Cucurella and Chilwell have returned to full fitness, while Ian Maatsen is another option at Mauricio Pochettino's disposal.
The teenager, who has represented England from Under-15 to Under-21 level, is now considered a possible target for Newcastle, who can offer Champions League football courtesy of their fourth-place finish in the Premier League last season.
Howe predominantly used Dan Burn as his first-choice left-back last season, while Matt Targett and Jamal Lewis were regarded as back-up options.
Lewis has now joined Watford on loan for the new campaign and Howe has turned his attention to recruiting a new left-sided defender after bolstering his options on the right side with the addition of Valentino Livramento earlier this month.
Livramento is one of four signings made by Newcastle so far this summer along with youngster Yankuba Minteh, midfielder Sandro Tonali and winger Harvey Barnes, the latter two scored on their debuts in the thumping 5-1 win over Aston Villa in their Premier League opener last weekend.