The former Sunderland Ladies stalwart, who had also previously plied her trade at Newcastle between 2011 and 2014, returned to her childhood club in September and has now committed her future to Becky Langley's side.
Potts has been in superb form this season, most recently providing the assist for new signing Bianca Owens' debut goal in the 3-2 win over Stockport County Ladies last Sunday.
The 28-year-old has contributed greatly to a strong start from Langley's team in the first half of the season, with United currently sitting second in the FA Women's National League Division One North.
She has also added extra experience to the Lady Magpies' backline, and starred in Newcastle Women's St. James' Park match against Barnsley Women in November, which United won 2-1.
Following the signing of her contract, Potts expressed her delight, saying: "Adversity has brought me back home stronger and I can't wait to utilise this strength for the Toon
"For me, signing contracts in the past sometimes felt slightly daunting for various reasons. I'd never have thought it would have been possible to sign a contract for my beloved club; there's not a single doubt, and I'm absolutely delighted and excited for every step of this journey."
Su Cumming, Head of Women's Football at Newcastle United, said: "We are delighted to have secured Charlotte to be part of Newcastle United Women's long-term plans.
"She has already played an important role in our games so far, and we believe her experience and skill will help us in our ambition to move out of this league."
An in-depth interview with Charlotte Potts features in Sunday's edition of UNITED, Newcastle United's official matchday programme