The Chronicle revealed today that the second city Championship side are keen to add the left sided youngster to their squad for the final 12 games of the campaign.
With United's squad now bolstered by five new faces signed in the January window, Pardew is prepared to let Ferguson go to City until the end of the season.
Ferguson said recently: "Alan Pardew has been terrific and talks to me quite a lot and we have both agreed going out and gaining first-team experience on a regular basis would be a good thing for me and mycareer.
"Since the new lads came to the club, I knew my opportunities were going to be limited for a while and I have spoken to the manager about going out on loan."
United have also farmed out Geordie duo Conor Newton and Paul Dummett to St Mirren in the SPL and Brad Inman to Crewe of League One.
Curtis Good remains on loan at Bradford City and experienced playing in a major final against Swansea City at the weekend.
Inman is also set for a Wembley appearance on April 7 when the Railwaymen face Southend United beneath the famous arch.
Michael Richardson (Gillingham) and Mehdi Abeid (St Johnstone) make up Newcastle's other youngsters enjoying temporary switches.
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