Middlesbrough's Steve McClaren, Bolton Wanderers' Sam Allardyce and Magpies skipper Alan Shearer have also been named as possible successors to Sir Bobby Robson.
Blues issue fresh Bruce denial
However, it is believed that ex-England boss Venables is the only person who has actually been approached by Newcastle chairman Freddy Shepherd.
Despite this development, Birmingham's board have again felt it necessary to clarify the position of their North-East-born manager Bruce.
A statement released on the club's official website read: "It is categorically denied that our manager, Steve Bruce, is poised to quit his role at Birmingham City to join Newcastle, or that this board would consider any offer of compensation to release the manager from his recently signed five-year contract.
"The relationship between the club and the manager is a strong and loyal one.
"Both parties are focused on building upon the success already achieved and we are all committed to the future of the club.
"Whilst the club acknowledges that recent media speculation is a result of the manager and the club's achievements, focus continues to be on delivering long-term success at Birmingham City Football Club."