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Published 16:13 29 Jan 2017 GMT
Updated 20:09 29 Jan 2017 GMT
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McCarthy signed for Everton from Wigan Athletic for £13m in 2013, and was a guaranteed starter for three seasons under Roberto Martinez.
However, injuries have restricted him to just eight Premier League appearances this season.
The 26-year-old's starting chances appear to be restricted further by the signing of Morgan Schneiderlin and the return from injury of Muhamed Besic.
Ronald Koeman also doesn't seem too pushed on the player.
It's a shame McCarthy has been prevented from joining Newcastle.
The move would be a chance to re-energise his career with Newcastle, who look certain to earn promotion back to the Premier League at their first attempt.
Rafa Benitez would also be a good manager for McCarthy.
Benitez is one of the best tactical, and defensive, coaches around. It could be argued his more analytical, slightly cold, approach might suit McCarthy after years playing under Martinez, who had a tendency to come out with some head-scratching bluster.
McCarthy also could have rebuilt his seemingly fragile confidence in the Championship before returning to the Premier League.
However, Everton have chosen to hold onto the midfielder, who can hopefully regain his place in Koeman's team.
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