Ben Arfa spent the first-half of the season on loan at Newcastle from Marseille.
The 23-year-old has signed a deal that will keep him at Newcastle until the summer of 2015.
“I am absolutely delighted to be signing for Newcastle United on a permanent basis,” Ben Arfa told the club’s official website.
“During my short time at the club, I thoroughly enjoyed playing for the team and for the supporters too. This is a great club and I am very happy to be committing my future to them.
“I am getting back to fitness as quickly as I can and am really looking forward to getting back to St James’ Park, seeing the lads again and of course working with Alan Pardew and his staff.
“During my time out, I have been inundated with messages of support from fans and I want to repay them all with good performances on the pitch later this season.”
Manager Alan Pardew added: “When I came to the club last month, one of my priorities was to secure Hatem on a permanent deal.
“The last thing I wanted was for us to lose him when his loan ended so we’re really pleased to have agreed that deal today.
“He’s obviously a top player and he’s shown that in France, at international level and in his short time here at Newcastle.
“I’m delighted to secure Hatem as my first signing and once he’s back fit, I have no doubt he’ll confirm just what a superb player he is.”
