"It is far more likely Eriksson will be brought in as director of football."
Ian McParland has been kept on as manager of the Magpies under the new regime.
However, BBC Sport understands that Eriksson, whose last involvement in English football was his one-season reign at Manchester City, is not the only big name to be linked with the club, with former England and Chelsea boss Glenn Hoddle also in the frame at one stage.
Following Eriksson's dismissal as Mexico manager he had been linked with a return to the Premier League with Portsmouth.
Former Notts County player Craig Short said the news took him by surprise when it was broken to him on Tuesday.
"I was absolutely shocked. I thought somebody was pulling my leg, to be honest," he told BBC Radio 5 Live.
"If it's true and he gets the investment to buy players it will be great for the club. It's not one of the biggest clubs in the country, but it's got a great history and tradition."
Signing the Swede would be a massive coup for the League Two club because of his record of success across European football.
Eriksson made a name for himself in his homeland with IFK Gothenburg before moving to Benfica where he won two Portuguese league titles, a Portuguese cup and the team finished runners-up in the Uefa Cup.
A spell in Italy followed before he returned to Benfica, leading them to the final of the European Cup in 1990 where they lost 1-0 to AC Milan.
It was at Italian side Lazio where he achieved arguably his greatest success, winning every major trophy in Italy - including the Serie A title in 2000 for only the second time in the Roman club's history - and the European Cup Winners Cup.
IFK Gothenburg 1979-82
Manchester City 2007-08
The Swede became the first foreign manager to take charge of the English national side when he was appointed as Kevin Keegan's successor in 2001.
He spent five years at the helm, leading England to the quarter-finals of the 2002 and 2006 World Cups, as well as a place in the last eight at the 2004 European Championships.
Eriksson announced his decision to step down as England manager before the 2006 World Cup in Germany - two years before his contract was due to expire.
A year out of the game followed before he joined Manchester City, where he spent only one season before being replaced by Mark Hughes.
In June 2008 Eriksson replaced Hugo Sanchez in the Mexico job, the legendary striker having been sacked three months earlier, but he lasted less than a year.
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