"I'm honoured to be a player for such a big club," Muto, the first Japanese player to join Newcastle, said.
British media reports said Muto's transfer fee was around 9.5 million pounds.
"I hope to achieve good results, that's what I'm here to do. I would like to perform well and leave my name in Newcastle's history," Muto added.
Muto, 26, is Newcastle's fourth permanent signing of the close season following goalkeeper Martin Dubravka, midfielder Ki Sung-yueng and defender Fabian Schar.
Newcastle begin their league campaign by hosting Tottenham Hotspur at St James' Park on Aug. 11.
(Reporting by Shrivathsa Sridhar in Bengaluru, editing by Pritha Sarkar)
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