NEWCASTLE today won the race to sign Michael Owen.
The Magpies announced the England striker had agreed a four-year deal after Real Madrid accepted the Geordies' £16m offer.
Owen was undergoing a medical today after Liverpool failed with a last ditch attempt to force a u-turn.
Newcastle chairman Freddy Shepherd said: "Bringing Michael to St. James' Park will rank alongside the signing of Alan Shearer as my proudest moment at Newcastle United.
"Michael is a fantastic goalscorer. He's someone we would love to build the team around and we hope he can help us bring success to the club."
Owen spent the night agonising over his future after talks between Liverpool and Real Madrid continued to stall on the issue of the striker's valuation.
The Reds' refusal to pay well beyond what they received a year ago forced Owen into a reluctant agreement with the St James' Park club.
The striker was initially set to reject Newcastle's overtures, but he knew that would give Liverpool less than 48 hours to agree a deal with Madrid.
Real gave him no encouragement an agreement with Anfield officials was a realistic prospect.
The 25-year-old held talks with Liverpool and Newcastle yesterday. Liverpool hoped Owen would hold his nerve today and reject Newcastle at the eleventh hour.
However, Owen is concerned about his international prospects in a World Cup year and apears to have put his England ambitions above his desire to return to Liverpool.
In a twist, Owen's Newcastle deal has a get-out clause for £12m next summer, which could result in him belatedly returning to Anfield in a year.
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