Burn, who hails from Blyth, has been a key part of Eddie Howe's first team squad since returning to the North East from Brighton in January 2022.
The 31-year-old, who has made 70 appearances for the Magpies, has been ever-present in the Premier League so far this season after helping the club qualify for the UEFA Champions League with a fourth-placed finish last term.
He has already matched his goal tally from last season, finding the net against Sheffield United and Paris Saint-Germain in recent weeks, while also making an impact off the pitch with his support for the Newcastle United Foundation's Mental Health initiative 'Football Talks'.
Burn said: "It means everything to me to play for this club and to sign a new contract. I said when I signed that I didn't want this to be just a 'stop-gap' signing to keep us up - I wanted to be here for a long time.
"So personally it feels even more of an achievement signing this one than it was actually signing here in the first place. I'm delighted and looking forward to the next couple of seasons."
Newcastle United head coach, Eddie Howe, said: "Dan is a leader on and off the pitch so we are delighted he has extended his stay with us.
"He is a key part of our squad and has played a huge role in our progress since his arrival.
"He knows exactly what it means to represent this great club and is hungry to succeed, and that can only help the team and the club going forward."