The 37-year-old, younger brother of former Manchester United and England international Michael, had been employed by the FA for 15 years as a coach developer and will now take up the vacant role at Newcastle's Academy.
Born in Wallsend, Graeme began his playing career at West Ham United's youth set-up, along with Michael, before injury put an abrupt end to his footballing career, later taking up a part-time coaching role at the Magpies' Academy between 2005 and 2007.
Speaking of his appointment as under-18s coach, Carrick told nufc.co.uk: "I'm absolutely delighted. I worked part-time for the club 15 years ago and I always hoped I'd come back one day.
"Being from the area, I understand the privilege and responsibility of the job and it's such a special club so I can't wait to start.
"I've had a brilliant time at the FA over the 15 years and I'm certainly appreciative of the opportunities and experiences gained but I think I'm ready for a fresh challenge. When the opportunity came up with Newcastle, it seemed like the perfect timing and the perfect next step for me.
"During my job at the FA, I'd been lucky enough to work with a lot of coaches and people within the club and I have seen the positive direction the Academy is heading which is something I want to be a part of.
"I'm particularly looking forward to being out on the grass, working with players everyday and I'll give absolutely everything in trying to help them realise their potential both as footballers but also, as importantly, young people.
"The short-term aim is making sure to improve the programme for the players and helping them to progress everyday and every week, individually and collectively.
"Longer term, it's striving to deliver a high quality programme whilst contributing, along with the rest of staff, towards making the Academy better."
Newcastle United Academy Director, Steve Harper added: "We are delighted to welcome Graeme to the Academy as he joins us for this very important role.
"A thorough recruitment process was undertaken and Graeme's passion for individual player development, both on and off the pitch, came to the fore.
"Graeme has over 15 years of experience in coach development and is very keen to utilise this vast experience within a team environment and will be very well supported by new under-18s Assistant coach Chris Moore.
"In his interviews, Graeme emphasised the importance he places on all areas of support for the players within the multi-disciplinary team and his standing within the coaching profession shows this is a significant appointment for the Academy."
Former Under-18s coach Peter Ramage, who made 69 competitive appearances for Newcastle after graduating from the Magpies' Academy, is to assist Shola Ameobi as the club's Loan Player Coordinator.
Former under-18s assistant coach, Ian Bogie will return to his role as Under-15/16s Lead Coach.
Newcastle United Under-18s begin their Under-18 Premier League North campaign at home to current champions Manchester City on Saturday, 20th August (kick-off 11.30am BST) at the Magpies' Little Benton Academy.