The former West Ham United boss replaced Chris Hughton who was controversially sacked on Monday to widespread disbelief among the Premier League club's long-suffering fans.
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"It's a massive club and I am privileged to be here," Pardew told a news conference.
He led Newcastle out of the Championship last season and made a solid start to life in the Premier League where they lie 12th, his dismissal causing surprise and disappointment among the north-east club's loyal fans.
"It is fairly obvious that the players and the fans had great respect for Chris Hughton and the fact that he has gone has caused quite a stir and some people are upset about it.
"I know the fans are frustrated," the 49-year-old Pardew said. "They probably thought they had some stability with Chris and that has gone.
"With the record of managers they have had here, it does not bode well, but I have tried to get in that contract a situation that they have to show faith in me.
"I have had a lot of texts from managers saying 'you must be mad going there', but I would never be able to live with myself if I did not take that challenge on.
"The problem I am going to have initially is the players and making sure I get my message across quickly and with clarity."
Pardew's first match in charge will be against Liverpool at St James' Park on Saturday.
"I don't think I am going to win a PR battle; the battles I need to win are on the pitch," he said.
