AS claim Arsenal and Monaco are also keen to snap up Gelson.
The Portugal international only joined Atletico from Sporting in the summer of 2018 but has endured a miserable time in Madrid.
Arsenal manager Unai Emery is said to be a big fan of Gelson, while Monaco boss Thierry Henry is keen on landing new recruits.
But problems at both clubs have reduced the chances of Gelson heading to London or Monte Carlo.
Newcastle transfer news: Rafa Benitez wants to sign Gelson Martins (Image: GETTY)
Newcastle transfer news: Gelson Martins is also wanted at Arsenal and Monaco (Image: GETTY)
Newcastle transfer news: Gelson Martins has flopped at Atletico Madrid (Image: GETTY)
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The report claims Arsenal’s ‘economic problems’ are restraining Emery from making a permanent signing this winter.
The Gunners will not sanction any big deals midway through the season and Emery is instead restrained to loans only.
But even stumping up a loan fee for Gelson appears to be too much for the north London club.
AS claim Monaco is not Gelson’s preference because they play in the French league.
Newcastle: Rafa Benitez REFUSES to discuss transfer window
Benitez landing Gelson would be a major coup as Newcastle seek to avoid relegation this season.
Owner Mike Ashley ha been frugal with his transfer spending in recent years and that has frustrated the manager.
Winger Gelson started his career at Sporting before seeking a deal to join Atletico last summer.
He has a £90m (€100m) release clause in his five-year contract and a loan move until the end of the season appears to be his best option for game time.
Gelson last played for Atletico before Christmas and boasts just one goal in 12 appearances this term.