The 20-year-old has signed a new three-and-half-year contract that will keep him at the club until 2013.
“He is delighted to have committed his future to Newcastle United,” Peter Harrison told Sky Sports.
“He signed on Monday, and it is great for him to get it out of the way so he can now concentrate on his football.
“He is a local lad and Newcastle was the only place he wanted to be, and it is a great deal for him.
“The fans have taken to him and I am sure he will become a huge favourite in years to come.”
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.