Ben Arfa joined Newcastle from Marseille in 2010, initially on loan before signing permanently the following summer despite an injury-ruined first season in England.
He returns to Ligue 1, a competition he won four times as a young player with Lyon and once more with Marseille in 2010, when he also helped the club win the Coupe de la Ligue.
Nice are 11th in the table but only three points clear of the relegation zone.
Ben Arfa has won 13 caps for France since his goalscoring debut against the Faroe Islands in 2007.