The former West Ham United boss returns to the Premier League after a three-year absence. He was fired in August as manager of League One Southampton.
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"I am honoured and privileged to have been given this opportunity at Newcastle United, one of the truly great clubs in English football," Pardew said in a statement on the club's website.
"I understand what this club means to its supporters. Throughout the football world people recognise that this is a unique club in many ways, with supporters who are second to none in their loyalty, passion and devotion for the team.
"I'm not a Geordie, of course, but I'm a football person with a love of the game and I can assure you I bring great drive, desire and commitment to the job."
Pardew's most recent managerial job was at Southampton where he was sacked amid reports of conflicts behind the scenes.
"Chris Hughton did a great job last season, guiding the club back to the Premier League, and he continued that good work this season," Pardew said.
"It is my aim to build on that now and take this club forward.
"I have always managed teams that have played attacking positive football, something I know the supporters here appreciate.
"At the same time, I intend to focus on developing exciting young players through the club's excellent Academy and development squad, and I know the board here at St James' Park are very committed to that too.
Pardew's first match in charge will be against Liverpool.
"I can't wait to get started, and what better way to kick-off than welcoming Liverpool to St James' Park on Saturday.
