The 20-year-old left-back, who was a target for Manchester United during the recent transfer window, has agreed improved terms that reflect his status as one of the first names on new manager Matthias Jaissle's teamsheet.
According to talkSPORT reporter Ben Jacobs, the deal adds two years to Hall's existing contract and was driven by Jaissle's determination to make the England international central to his plans.
"There were always these two extremes at play," Jacobs said. "Either Manchester United would make an approach, would have to overpay, and Hall would have been somewhat open to that move. Or he stays and under the new manager, Matthias Jaissle, is invested in the project, and then he signs a new deal."
Hall's situation had become uncertain earlier in the summer when he put the brakes on negotiations that had been in place since February or March. The pause was prompted by frustration over his lack of consistent playing time under former manager Eddie Howe, which cost him his place in the England squad to Newcastle United teammate Dan Burn.
Jaissle's arrival has changed the dynamic. The German has told Hall he is the undisputed first-choice left-back and the player has responded by committing his long-term future to the club.
"Then from there, there was no hesitation in getting this deal over the line," Jacobs added.
Manchester United were told Hall was not for sale regardless of their offer, and the new contract makes any future approach significantly more expensive. Newcastle invested a reported £28 million to sign Hall permanently from Chelsea last summer after an initial loan spell.
However, Jacobs cautioned that a long-term extension does not guarantee Hall will see out the full term. He pointed to Morgan Rogers, who signed a new deal with Aston Villa late last year only to depart the following summer.
"I don't think we can say categorically, depending on how the season goes, that Hall is unavailable in the summer 2027 market," Jacobs said. "But it's a really positive sign for Newcastle. If everything now goes according to plan, then Hall will remain invested in this project."