The Scottish international has been one of the Potters' top targets this summer as they look to build a squad capable of returning straight back to the Premier League following their relegation last season.
The previous update of the transfer claimed Ritchie was open to the move, so long as his £60,000-per-week wage demands were met, while Newcastle would only part ways with the 28-year-old if they had secured a replacement - with Crystal Palace’s Andros Townsend the leading candidate.
According to Sheth, if a breakthrough in negotiations arrive it could result in a domino effect for both Newcastle and Crystal Palace.
He said, via the Daily Star: “Stoke are in advanced talks with Newcastle United over the signing of winger Matt Ritchie.
“It’s thought the clubs are still apart on their valuations, with Newcastle’s asking price around £15m. We’re told thought that Ritchie is open to the transfer.
“If the Ritchie deal can be done, then Newcastle could fund a move for the Crystal Palace winger Andros Townsend.
“One source has told us it would take at least £17m to take Townsend back to St. James’ Park but Palace manager Roy Hodgson says he has no interest in selling.
“But despite Hodgson’s comments, it seems Palace are looking around for potential Townsend replacements.Top of their list is West Ham United’s Michail Antonio. It’s thought West Ham would consider offers upwards of £15m.
“I think you call that the domino effect,” he added.
Just two-years since his move from Bournemouth, Ritchie is expected to demand a transfer fee in the region of £12m and £15m.