Sky Sports News understand the deal to be worth £29.5m for the right-back, and the 23-year-old is expected to fly to Newcastle ahead of a medical on Monday.
There are still a few formalities to complete, but there is confidence Dedic will be a Newcastle player in time for their Premier League opener against Liverpool next Sunday, live on Sky Sports.
The right-back could be immediately called upon at St James' Park, with Tino Livramento still recovering from a calf injury sustained on international duty with England in June.
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Dedic previously worked with Newcastle head coach Matthias Jaissle at Red Bull Salzburg, where he helped the club retain the Austrian Bundesliga title in 2023.
Newcastle have been looking to strengthen at right-back following Kieran Trippier's departure to Wolves on a free transfer this summer.
The Bosnia and Herzegovina international has won 31 caps and started three of his country's four matches at the World Cup.
Newcastle want Palhinha on permanent deal
Newcastle are also in talks over a permanent deal for Joao Palhinha from Bayern Munich.
The club are looking to strengthen their midfield after their pursuit of Pierre-Emile Hojbjerg and Aston Villa's proposed loan move for Palhinha both broke down last week.
Bayern are not interested in loaning out the midfielder, which is why sporting director Max Eberl said yesterday that the club would not do a deal with Villa.
Palhinha is now reassessing his options, which could include staying at Bayern or returning to Portugal, with Benfica and Sporting both showing interest.
However, the midfielder appears to prefer remaining in the Premier League if the opportunity arises.
