"Joe realises that Newcastle don't have a bottomless pit of money so he will be very careful with what he does."
Kinnear is also trying to persuade striker Michael Owen to sign a contract.
Owen, whose current contract is due to expire next summer, has been offered a new deal by the club.
There has been no formal response from the 29-year-old England international, although sources close to Owen have insisted he has not rejected Newcastle's offer.
Kinnear has indicated that Owen will not be sold in January, even if there is a risk he could leave St James' Park on a free transfer at the end of the season.
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