Eddie Howe says Newcastle would resist the proposal made by Liverpool owner John Henry to impose further Premier League spending restrictions.
The Anfield chief believes new limitations are needed to prevent the English league from going the same way as some European leagues, where one or two clubs dominate.
Newcastle, backed by a Saudi Arabian Public Investment Fund worth £700billion, have already been frustrated by Financial Fair Play rules. They would have liked to spend more than the £215million invested over three transfer windows, especially amid their current struggle for goals.
Club-record signing Alexander Isak, at £60m from Real Sociedad last August, is still short of peak fitness, while Callum Wilson has one goal since October.