The midfielder, who enjoyed a spell on loan at the City Ground last term, will return to Forest for the duration of the 2018/19 campaign. Forest also have an option to make the move permanent.
Colback has made a total of 102 appearances for Newcastle United to date, scoring five times, having arrived at St. James’ Park in June 2014.
The 28-year-old – who was part of the Magpies’ Championship-winning squad in 2016/17 – initially joined Forest on loan in January 2018, where he played 16 times and scored once for Aitor Karanka’s men.
Killingworth-born Colback will link up again with former Magpie Daryl Murphy, who is now part of Karanka’s squad having left St. James’ Park in July 2017.