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The Premier League club are set to pay £6.5million for the Benin international in January, according to The Guardian.
The towering striker scored five goals in his debut campaign in the top-flight last season but has started just eight Championship games for Aston Villa this term.
His lack of game time is said to have attracted interest from league rivals Newcastle, who are keen on signing another striker after dropping to second in the table on Tuesday.
But Middlesbrough have reportedly convinced Gestede, 28, to reject a move to St James’ Park for the Riverside Stadium.
Gestede’s arrival is likely to lead to the departure of out-of-favour striker Jordan Rhodes, who is yet to score in his six appearances this season.
Villa manager Steve Bruce is said to be interested in signing the Scotland international, who has a reported £9m price tag, as he looks to replace Gestede.
While Newcastle are set to now turn their attention to Brentford’s Scott Hogan
with Magpies striker Aleksandar Mitrovic attracting interest from Crystal Palace and Swansea.