The 29-year-old has linked up with Russell Martin's men on a temporary basis and will spend the entire 2023/24 campaign with the Championship side.
Scotland international Fraser joined the Magpies after leaving Bournemouth in September 2020 and has made 59 appearances in all competitions for the club, scoring three goals.
Last term, he made eight appearances for Newcastle, but hasn't featured for United since October 2022.
The Saints currently sit fifth in the second tier and are unbeaten in their three league outings so far. Fraser could make his debut for Martin's side when they host Queens Park Rangers at St. Mary's on Saturday afternoon.