The forward signed a new five-year deal at the club on Monday.
The young forward was impressive for the Magpies last season, managing to bags five goal in 21 appearances during a difficult campaign.
His performances caught the eye, with a number of top teams reportedly tracking the Spaniard last summer.
He has now signed an improved deal at St James’ Park though, penning a five year deal on Tuesday afternoon to see him extend his stay until 2021.
And manager Steven McClaren has backed the youngster for a bright future, saying he has been surprised by how much ability he has.
“Ayoze has proved himself to be a very good player and I am delighted he has extended his contract here,” he told nufc.co.uk.
"He has surprised me in terms of his ability. He can change a game, win a game and has scored some important goals for us this season. He has been a big plus.”
"There is a lot more to come from Ayoze and that will happen in a Newcastle United shirt."
They will now be hoping that Perez can continue his fine development and play a part in their efforts to escape relegation this season.
He has only managed five Premier League goals in 21 appearances so far this season, with his side having struggled for goals in this campaign.
They are the fourth lowest scorers in the division at present, with that having played a major part in their struggles so far and Perez going on a scoring run in the remaining games could play a huge part in their survival hopes.