Newcastle did not disclose financial details of the deal, but British media reported that the club would receive about 5.5 million pounds for the player.
The 23-year-old could line up against his Newcastle team mates as soon as Saturday, when the sides face each other in a pre-season friendly.
Newcastle boss Rafael Benitez has acquired three players so far, including converting the loan signing of goalkeeper Martin Dubravka into a permanent transfer from Sparta Prague for a reported 4.5 million pounds.
Benitez has also signed former Swansea City midfielder Ki Sung-yueng on a free transfer and brought in winger Kenedy on loan from Chelsea.
The Spaniard is keen to strengthen his squad and improve on last season's 10th place league finish, but needs to sell players to free up funds for incoming transfers.
(Reporting by Simon Jennings in Bengaluru; Editing by Christian Radnedge)
