The new deal will keep the 24-year-old at St James’ Park until the summer of 2016.
“I am absolutely delighted to have agreed terms with the club on a new long-term contract that will see me play for Newcastle United in my prime years,” Taylor said in a statement.
“I joined the club as a boy and feel confident that I can fulfil all my professional ambitions here at my hometown club.
“Throughout the past few months, I have never lost hope that everything could be sorted and that I could stay here and play for this fantastic football club.
“I would like to thank the fans for their support throughout the contract negotiations and I’ll look to repay them with my performances in the black and white shirt.”
