The Magpies had been linked with a move for the England international, but talks have broken down.
Everton wanted to sell Calvert-Lewin to balance their books but will now have to generate interest from other clubs.
Serie A giants AC Milan are reportedly considering a move for the 27-year-old after releasing Olivier Giroud.
The Magpies are after a Premier League-proven centre-forward to replace Callum Wilson, but an agreement could not be reached.
The decision to pull out of the Calvert-Lewin deal also impacts young winger Yankuba Minteh’s future.
Newcastle reportedly offered Minteh as part of a potential deal for Calvert-Lewin, but he is no longer available to Everton.
However, a transfer for Minteh remains a possibility, with a move to another club emerging as the most likely outcome.
Lyon and Borussia Dortmund are interested in the teenage Gambian forward following his exciting loan spell at Feyenoord.
The news will be a massive blow to Minteh, who was reportedly keen on a move to Merseyside.
The Magpies are sifting through offers for the youngster. A potential windfall could be used to bolster other areas of the squad.
Newcastle are holding firm on their £40 million valuation for the highly-rated Gambian teenager.
