It is understood the Magpies are looking to sign Brazilian Kenedy - who spent the second half of the season on loan on Tyneside - on a permanent deal, while targeting a loan deal for Loftus-Cheek.
Waugh wrote: “Rafa Benitez wants to sign at least one player from Chelsea this summer on loan – and a reunion with winger Kenedy is the top priority.
“However, Newcastle could look to sign the Brazilian on a permanent basis, then attempt to lure Loftus-Cheek on loan, given that he is a long-term target."
As per league rules, clubs can only loan one player from another single Premier League club at any one time - so Loftus-Cheek's deal would depend upon whether Kenedy's deal was a permanent one.
Benitez is known to admire Loftus-Cheek and is looking for significant improvements for his Newcastle side this summer in a number of positions.
According to some reports, Chelsea are looking at a £25m price tag should they chose to cash in on the midfielder, who spent the second half of the season on loan at Crystal Palace.
Loftus-Cheek has three years remaining on his contract at Stamford Bridge.
The fee may be seen as beyond Newcastle's notoriously tight transfer limits this summer, hence the look towards a loan deal.
The England midfielder is also understood to want to leave the London club should he not get assurances around regular football.
Loftus-Cheek is part of England's World Cup squad this summer in Russia, and impressed during a cameo appearance late on against Tunisia.
Should the player continue to impress in the World Cup, then it remains to be seen whether he is utilised more at Stamford Bridge - who are yet to confirm who will be in charge of the club next season, with the ongoing saga over Antonio Conte's future and the possible appointment of Maurizio Sarri.
It remains to be seen whether deals can be agreed for Kenedy, and then possibly Loftus-Cheek, but should the club manage to finalise deals for the pair the Magpies will look significantly stronger ahead of next season.