The deal for the 22-year-old included Remy Cabella moving in the opposite direction on loan.
"Florian is a player the club have been watching for a long time and I am delighted that we have been able to sign him," Newcastle United head coach Steve McClaren told the Premier League club's website.
"He is a perfect signing, someone who is young, with great potential and is one of the best young players in Europe.
"He is an exciting, creative talent who can score goals."
McClaren has clearly identified strengthening Newcastle's offensive options with Georginio Wijnaldum signed from PSV Eindhoven and Aleksandar Mitrovic from Anderlecht.
(Reporting by Martyn Herman, editing by Alan Baldwin)
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