Dortmund have agreed a fee with St Etienne for the Gabon international and has been given permission to undergo a medical with the Champions League finalists.
St Etienne president Roland Romeyer has confirmed the striker is on the verge of a move to Germany with just minor details to be sorted out.
"He has been given permission to attend the medical examination," said Romeyer. "The contract details and the financial plan are still to be clarified but I have no doubt that we will reach an agreement.
Dortmund's technical director, Michael Zorc, is hopeful of tying up a deal for Aubameyang.
"We are confident it will happen quickly," Zorc told the Ruhr Nachrichten newspaper.
Dortmund coach Jurgen Klopp is a big fan of Aubameyang, but was remaining coy on the deal being agreed.
"Pierre-Emerick Aubameyang is good, he is a very interesting player, but I can not say more until tomorrow," noted Klopp.
The news is a blow for Newcastle as they had been chasing the highly-rated 24-year-old for several months and was one of their top summer transfer targets.