The 19-year-old, who was born in the United States, arrives from Mexican top-flight side Santos Laguna, where he made his debut last year and has scored three goals and claimed three assists in 13 league games.
At international level, he helped Mexico win the 2019 CONCACAF Under-17 Championships, scoring five goals - including the overall goal of the tournament - and was part of the squad which finished as runners-up at the 2019 Under-17 World Cup in Brazil.
And he was involved as the under-23s won the 2020 CONCACAF Olympic Qualifying Championship earlier this year.
The deal includes an option to make Muñoz's move to Tyneside a permanent one.