Ashworth resigned from his role as technical director at Brighton in February - but could not join the Magpies immediately as the two Premier League clubs failed to negotiate a fee.
However, despite fears the Toon would have to wait until November to put Ashworth in charge of their transfer policy, an agreement has now been reached for the 51-year-old to start work as the new sporting director at St James' Park.
A club statement read: "Newcastle United are delighted to announce that Dan Ashworth will become the club's sporting director after an agreement was reached with Brighton & Hove Albion to release him from his current contractual obligations with immediate effect.
"The terms of this agreement will remain confidential between the clubs and are subject to Premier League approval.
"Newcastle United will issue further information following the relevant approval process."
Ashworth arrives with serious pedigree following his work with the Football Association and Brighton.
He will now oversee the first summer transfer window at Newcastle since their recent Saudi-backed takeover, as the club look to build on an encouraging finish to the 2021/22 campaign.
The Saudi Public Investment Fund, with assets worth almost £500billion, will no doubt put unlimited funds at his disposal as the Magpies look to transform into a trophy-winning club.
And ex-England striker Darren Bent believes Ashworth was the missing piece of the jigsaw.
Bent told talkSPORT: "That's massive for Newcastle - because he is phenomenal.
"The way he's transformed Brighton with some of the targets he identified, that is massive.
"He worked for the FA as well. That is what Newcastle needed.
"You can have all the money in the world, but you need someone who knows how to build with the right targets.
"That is huge for Newcastle. They should be looking at top-eight next season."