The former Ipswich Town player is said to have been involved in a bust-up with Sir Bobby Robson over where in the Magpies side he should play and reports suggest Newcastle could be ready to offload the England international.
Reports in the media are suggesting this news has alerted Blues boss Steve Bruce into trying to tempt Dyer into a season long loan deal at St Andrew's.
Newcastle fans vented their anger at Dyer during Wednesday nights international game between England and Ukraine at their St James Park ground. Dyer was booed every time he touched the ball.