Other candidates include Gary McAllister, who left as Coventry City boss last season to spend more time with his ill wife, John Gregory who had a brief spell in charge of East Midlands rivals Derby County as well as a stint as Villa boss, and Bryan Robson, the ex-Man United player and ex-Middlesbrough boss.
Newell is apparently being courted because of Luton's unbelievable start to the new season, winning 10 of the last 12 games, and also because he used to play for Leicester.
However, this wouldn't be the first time speculation has been around of Newell moving away from Kenilworth Road. Earlier in the season Mike Newell was being linked with the job at Ewood Park after Graeme Souness took over at Newcastle, but instead the Blackburn Rovers board opted to appoint Mark Hughes.
And Hatters fans will be hoping that, if he is approached, Newell resists the temptation of Filbert Street to lead Luton to glory in League One this season.