The 58-year-old, who was born in Corbridge, Northumberland and raised in Wallsend, returns to Tyneside after signing an initial three-year contract and will be joined at St. James’ Park by coaches Steve Agnew and Stephen Clemence.
Bruce said: "I’m delighted and incredibly proud to be appointed as head coach of Newcastle United. This is my boyhood club and it was my dad’s club, so this is a very special moment for me and my family.
“There is a huge challenge ahead of us, but it’s one that my staff and I are ready for. We’ll roll our sleeves up and we’ll be giving it everything from the off to ensure supporters have a successful team that they can be proud of.”
Lee Charnley, managing director at Newcastle United, said: “Steve has a deep affection for Newcastle United and we are very pleased that a coach with his vast experience and connections to the club and city has joined us.
“Steve knows what this club means to supporters and to the region and he will put his heart and soul into leading our talented group of players with the full support of our staff.
“The hard work for Steve and his team starts immediately and we will be fully prepared for the challenge of a new Premier League season.
“I would place on record my thanks to Ben Dawson, Neil Redfearn and our medical and support staff for the way in which they have worked together to oversee the start of our pre-season preparations.”
Bruce and his staff are scheduled to travel to China and will meet the squad following Wednesday’s Premier League Asia Trophy clash with Wolverhampton Wanderers.
Ben Dawson and Neil Redfearn will continue to prepare the players for Wednesday’s game.
A former Wallsend Boys Club player, Bruce began a decorated professional career at Gillingham, where he carved out a reputation as a solid and determined centre-half with a favourable goalscoring record.
After a three-year spell at Norwich City, which included winning the League Cup, he moved to Manchester United, where he would go on to lift three Premier League titles, three FA Cups and the European Cup Winners' Cup, as well as a further League Cup.
Bruce made 84 appearances for Birmingham City between 1996 and 1998, before a career in the dugout got underway with a player-manager role at Sheffield United.
In a 21-year coaching career since, Bruce has taken charge of a further eight clubs and has clocked up more than 900 competitive matches.