Donnelly was made captain of the side last summer and has now worn the armband multiple times during the Lasses' outings at St. James' Park, lifting the FA Women's National League Division One North title last term.
She was also honoured with the league's Golden Glove award for 2022/23 after keeping 11 clean sheets.
Grace was presented with a special trophy to honour her new club captaincy by goalkeeping coach Chris Stygal at St. James' Park on Tuesday. Her family were also invited to enjoy the moment.
Newcastle Women manager Becky Langley said: "Grace is a fantastic human being and to recognise her as club captain is fantastic.
"She is a role model for our women's team and to all the little boys and girls who are watching her play."
Donnelly said: "It's an absolute honour to be given the new role of club captain.
"We are lucky to have a team full of great leaders and I am looking forward to an exciting season ahead."
SEASON TICKETS
Season tickets for Newcastle United Women's 2023/24 campaign are now available to purchase. Priced at £50 for adults and £10 for children, supporters can secure their seat for every league match here.