The 23-year-old joined the Magpies from Everton in January 2023 for a reported £45m and has since established himself as a key first-team player under manager Eddie Howe.
Gordon has contributed with 15 goals and 11 assists in 74 appearances for Newcastle across all competitions, including 11 goals and 10 assists in 35 Premier League matches last season.
The England international's decision to commit his future to Newcastle ends speculation of a potential return to Merseyside with Liverpool, who have been credited with an interest in the winger since the summer.
Newcastle were tipped to sell Gordon to Liverpool at a time when they were navigating through their Premier League Profit and Sustainability targets, but they successfully kept hold of their No.10 and he has now opted to commit his future to the Magpies long term.
Speaking to Newcastle's official website, Gordon said: "I just think the club's in a great place. Since the takeover it's just been up and up. Me and the gaffer are a perfect match in terms of style of play. I love it here.
Gordon targeting silverware with Newcastle
"I'm very happy here, I like living here, the team is very suited to me - and I'm here to win a trophy. The short story is we need to win a trophy. Winning a trophy here would be unbelievable because the fans have waited so long. To be part of that team who finally does it is a massive goal of mine.
"We (my family and I) have always felt settled because Geordies are so easy-going and so welcoming, very easy to speak to and always want the best for you. It's a very easy place to come and live, I think. I feel very connected to everyone - teammates, fans and everyone involved."
Newcastle boss Howe added: "I'm delighted Anthony has committed his future to the club. He has grown as a player and as a person during his time at Newcastle United and he has continued to prove just how good he is on the biggest stage.
"He is dedicated to improving himself and the team, and when you add that to the quality of his performances and his incredibly high work-rate, it's clear to see why he has such a special connection with our supporters.
"There's even more to come from Anthony and I'm excited about what's ahead for him and us."
Mitchell: 'Gordon has big part to play in Newcastle's future'
Newcastle sporting director Paul Mitchell continued: "Anthony is a top player with so much still ahead of him. We are all delighted that he is committed to the journey we're on at Newcastle United.
"Our staff have done a tremendous job in nurturing his talent and evolving his game, and Anthony deserves so much credit for his commitment to pushing himself to be better and to achieve every day.
"Developing, rewarding and retaining our talented young players is an essential part of building towards sustainable success, and Anthony has a big part to play as we strive to reach our ambitious targets."
Who are Liverpool's Gordon alternatives?
Gordon's decision to commit his future to Newcastle means Liverpool must now turn their attention to other attacking targets amidst uncertainty over the long-term future of Mohamed Salah, who is out of contract in June 2025.
Liverpool have been credited with an interest in Borussia Dortmund's Karim Adeyemi, Real Valladolid's Raul Moro and Salah's Egyptian teammate Omar Marmoush, who plies his trade with Eintracht Frankfurt.