New boss Matthias Jaissle has highlighted the experienced winger as a key part of his Magpies squad after losing captain Bruno Guimaraes, Anthony Gordon and Sandro Tonali this summer.
Jaissle has regularly spoken to Murphy about his squad place and he asked the club not to sell the 31-year-old winger in August after two reported transfer offers from Nottingham Forest.
Murphy was a highly valued player under Eddie Howe, but he's now into the final year of his contract, and was unsure over how Jassle viewed him.
Reports from Mail Sport claim a decision has now been made by all parties to increase his current deal, which expires at the end of the season on until 2028.
Murphy has become a fan's favourite on Tyneside, after landing from Norwich City in 2017, making him their current longest-serving player, and he's sixth (224) on the club's all-time Premier League appearance list.