Nolberto Solano has completed a move back to Newcastle from Aston Villa for a fee believed to be £1.5m.
Peruvian international midfielder Solano, 30, left St James' Park for Villa in January 2004 for the same fee.
James Milner will move the opposite way on a season-long loan to help fill the void left at Villa by Solano's exit.
Solano, who had also been linked with Liverpool, has signed a two-year deal with Newcastle having the option to extend it by another 12 months.
"It's great to be back at Newcastle and I hope we can have a really successful season here," said Solano.
Newcastle chairman Freddy Shepherd said the club's fans were behind the decision to bring back Solano.
"We know the fans really wanted Nobby back at Newcastle and we listened to what they had to say. We listened - and now we've delivered," he told the club website.
"He's an adopted Geordie and it's great to have him back. He loves the area, the club and the fans, and they love him too."
The right midfielder will not be immediately available to manager Graeme Souness as he has two games of a three-match ban to serve following his sending-off for Villa against Portsmouth.