Kieron Dyer was in Newcastle on Thursday finalising his £7 million move to the North East.
Ipswich Town boss George Burley, who admitted the deal for the England B midfielder was now out of his hands, said: "Kieron has agreed personal terms and is undergoing a medical.
"He is a special player and it will be a big loss to us."
Burley has yet to make a move for a replacement, but Sunderland winger Martin Smith has joined the squad for a trial and is hoping to impress enough to land a permanent deal.
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