Quickfire second-half goals from Liam Smith and Kian Breckin had turned the game on its head to cancel out Michael Ndiweni's 34th-minute opener but the Magpies' striker struck again with 12 minutes to go to salvage a point for the hosts.
The draw saw Ben Wilkinson's young charges miss the chance to close the gap - if only temporarily - on league leaders Blackburn Rovers.
Unbeaten in our last four in all competitions and having lost just once all season, Wilkinson's side headed into the clash in fine form.
With three wins, one draw and one defeat from our opening five league games, the reigning Champions sat third in the U18PL - a point behind Everton and eight behind Blackburn but with two games in hand over the Lancashire outfit.
Newcastle started the day in tenth spot, having endured a mixed run of fortunes from their seven league encounters: two wins, two draws and three defeats, but it was the home side who struck first through Ndiweni.
City hit back eight minutes after the restart as Liam Smith levelled the score before Breckin edged the visitors in front just four minutes later.
The away side could not hold out for the three points though, as Ndiweni doubled his personal tally late on to claim a share of the spoils.
How we lined up
CITY XI | Murray-Jones, Susoho (Dickson 68'), Simpson-Pussey, I Smith, Taylor, Whittingham, Mebude, Breckin (Galvez 84'), Ogwuru, Adam, L Smith
SUBS | Honor, Dada-Mascoll
NEWCASTLE XI | Thompson, Barclay, Beresford (Green 77'), Stewart, Robertson (Mavididi 70'), L Miley, J Miley, McNally, Crossley, Stanton, Ndiweni
SUBS | Bessant, Emerson
Our U18PL campaign continues, as City host Sunderland at the City Football Academy next weekend.
Kick-off is at 13:00 UK time on Saturday 6 November.
City are also in UEFA Youth League action on Wednesday 3 November (13:00) with the visit of Club Brugge to the Academy Stadium. Tickets for our European clash are now on sale.
You can find comprehensive coverage of our EDS and Academy games on mancity.com, our official app and our Twitter account: @ManCityAcademy.