Roeder, 50, took the Magpies from the bottom half of the Premiership to seventh after the sacking of Graeme Souness in February.
Former captain Alan Shearer has also been handed the role of sporting ambassador in the new regime.
Roeder said: "I am very proud and elated. I'm happy with a two-year deal because it keeps us all on our toes."
He added: "When I came up here as a player, I suppose that having an ambition of managing the team would not have been an option.
"As I went on, and if you had asked me a couple of years down the line, I would have said I would like to be a manager here one day.
"Now it has happened it shows that dreams do come true.