Pardew has admitted that Newcastle fought off a host of clubs to win the race to sign the striker.
He said in a club statement: "We're delighted to confirm our first signing of the summer and very pleased to have Ayoze at Newcastle United, as a number of other clubs were chasing his signature too.
"He had a terrific season in Spain last year and is a player who we hope to develop further on Tyneside.
"He's only 20 but has a very good eye for goal and that's a great asset for any young player to have."
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