It is understood the £9.5million signing from Deportivo La Coruna will spend next season on loan at the Dutch club, who failed to land him during the January transfer, with a view to making a permanent switch.
Champions League For Luque Next Season
Newcastle lost to AZ Alkmaar in the UEFA Cup quarter finals this season, but the Dutch side threw away the greatest moment in their short career when they lost the Dutch league to PSV at the weekend.
PSV Eindhoven coach Ronald Koeman insisted his team are worthy Dutch champions despite only pipping Ajax to the crown by a single goal on an eventful final day of the Eredivisie season.
The afternoon began with AZ Alkmaar, PSV and Ajax all level on points at the top of the table.
AZ were in pole position on goal difference, but their defeat at the hands of Excelsior left Ajax and PSV to battle it out.
PSV had started in third place but came through to retain their crown as they thumped Vitesse Arnhem 5-1 while Ajax could only secure a 2-0 margin over Willem II in Tilburg.
Koeman: "We made it very difficult for ourselves. But, if you are number one after 34 games you are rightly champions.
It was a 20th title in club history and third on the bounce for PSV. For Koeman, it was a personal victory in his first season at the club after replacing Guus Hiddink.