Arsenal, Spurs and Chelsea all made late bids to sign the former Charlton, Leeds and West Ham star, but Sir Bobby’s persuasive powers and a pile of cash persuaded him that St James’ Park was the place to be.
A club spokesman said: "Freddy Shepherd and Sir Bobby Robson met with the player yesterday to finalise matters. They are confident that Lee will be an asset to Newcastle United.
"The club is moving forward to a new era with confidence as it continues to build on its recent successes in the transfer market, developing a talented array of players within its squad."
The move is subject to a medical, which the player will undergo on his return from holiday.