The player himself says he is looking forward to first team football at Highfield Road, and will be looking to break into the side at St James Park the following season.
"Having played every week at Hibs and broken into the Scotland side I decided first-team football was what I needed at this stage of my career," Caldwell told the Evening Chronicle today.
"It looked like Newcastle couldn't give me that and I was considering my future at the club, but this will give me the best of both worlds.
"I'll be getting experience at a big club and at a good level but I'll still be a Newcastle player.
"I'll be coming back to St James's Park a better player and hopefully I'll be ready for the first team.
"I've never wanted to leave and it is my dream to play for Newcastle in the Premiership."