Sturridge arrived at Anfield from Chelsea in 2013 and quickly became one of Liverpool's most impressive and consistent players as he led the line.
However, he has seen his place in the pecking order fall due to consistent injury problems over the years.
Even when fit, the form of Mohamed Salah, Roberto Firmino, Sadio Mane and, previously, Philippe Coutinho before his recent move to Barcelona, have seen the 28-year-old start games on the bench.
With just 14 appearances in all competitions this season, including nine league appearances, the England international is seeking a move away to keep him in the running for the 2018 World Cup in Russia.
But a loan move to 13th place Newcastle has taken a dent as, according to Chronicle Live, Sturridge's £120,000-a-week ($162,000) wages are proving to be a stumbling block for manager Rafa Benitez.
With Benitez's side's top-earner being Jonjo Shelvey at £80,000-per-week ($108,000), the club would need to offload some players to free up their wage bill.
The report states that the Magpies are already looking to move some players on, such as Jack Colback, Massadio Haidara, Mohamed Diame and Henri Saivet.
"We are working hard to be ready [for incoming transfer deals], but at the moment, I don't know," Benitez said at the club's last press conference. "It's an important month for the club, not just this week."
The Birmingham native has scored a total of 63 goals in 133 games in all competitions for Liverpool. However, he has scored just 28 goals since the start of the 2014/15 season.