The Owls hierarchy remain locked in discussions with their Magpies counterparts regarding compensation levels after Bruce expressed a wish to manage the Premier League club earlier this week.
Bruce is understood to have met with Newcastle managing director Lee Charnley on Wednesday evening, ahead of informing the Owls hierarchy that he wanted to take up the challenge of joining his boyhood club on Thursday with further talks subsequently held with Magpies bosses.
But if a breakthrough has not been reached regarding compensation, Bruce – who was present at the club’s training ground at Middlewood Road for training – is likely to be in attendance at this afternoon’s friendly at Lincoln City.
The Magpies had made Bruce their leading target to replace Rafael Benitez, with Bruce’s Owls’ assistants Steve Agnew and Stephen Clemence also set to move to Newcastle and join his backroom team, according to reports.
Owls defender Liam Palmer, meanwhile, has signed a new three-year deal.
The Worksop-born full-back was offered fresh terms at the end of last season alongside keeper Keiren Westwood and midfielder Kieran Lee.
Westwood signed a two-year deal earlier this month, with Palmer, who joined the Owls’ academy at the age of just seven, having now committed his future to the club.
The 27-year-old enjoyed an impressive 2018-19 campaign at Hillsborough and is currently the club’s longest serving player after coming through the ranks and making his debut in August 2010.
Palmer’s time at the club was solely interrupted by a season-long loan at Tranmere Rovers in 2012-13 and he is currently preparing for his ninth campaign with the first-team squad at Wednesday, having played for the first team on 224 occasions.
His form last season culminated in a senior debut for the Scotland team in March, with Palmer’s grandmother having been born in Carluke.