The 47-year-old will remain in hospital after missing Newcastle’s 4-1 Premier League win over Man United on Sunday.
Howe was forced to seek medical treatment after feeling unwell for several days last week, but is now said to be on the mend.
Newcastle released a statement to update the fans regarding the health of their popular manager.
The statement said: "Newcastle United can announce that Eddie Howe is recovering in hospital after being diagnosed with pneumonia. The club continues to extend its best wishes and support to Eddie and his family as he continues his recovery.
"Jason Tindall and Graeme Jones will lead the team against Crystal Palace and Aston Villa this week, with further updates to be communicated in due course."
Newcastle’s win over Man United saw them climb into the top four, leapfrogging fellow Champions League hopefuls Chelsea and Man City.