The 25-year-old forward scored 18 Premier League goals for the Rs last season and was said to be Mike Ashley's number one target.
Newcastle were linked with the player long before Wally with the Brolly was drafted in.
Austin, who was in Roy Hodgson's England squad for last month's fixtures with the Republic of Ireland and Slovenia, is entering the final year of his current deal at Loftus Road but QPR are not prepared to lower their valuation of one of their prized assets.