Benitez, who was sacked as manager of Real Madrid earlier this season, has been handed the job of attempting to steer Newcastle to Barclays Premier League survival, with the club second-from-bottom heading into the weekend.
Rafa Benitez told the club's website: "I have the pleasure to confirm I have committed to a legendary English club, with the massive challenge of remaining part of the Premier League.
"It will be a challenge not just for me and my staff but for the players, the Club and the fans.
"All of us must push together in the same direction and with the same target in mind. This is the reason why I'm going to ask for your total support to successfully complete this task.
"Personally, it means my return to the Premier League, closer to my home and my family. I can't be happier.
"C'mon Toon Army! The club and I need your total involvement!"
Newcastle also confirmed the appointment of Fabio Pecchia, Francisco de Míguel Moreno, Antonio Gómez Pérez, who will join Ian Cathro and Simon Smith to form Benitez's coaching team.
Coaches Paul Simpson, Alessandro Schoenmaker and Steve Black have all left the club.
Benitez arrived at St James' Park shortly after 2pm to hold face-to-face talks with Magpies managing director Lee Charnley after days of discussions between the Benitez camp and intermediaries.
It is understood the players, who were on a day off, had been summoned to the training ground for a meeting, where they may now meet their new boss for the first time.
McClaren departed with the club lying in 19th place in the Premier League table, and with only 10 games remaining in which to spare themselves a second relegation in seven years.
He has spent the last six days waiting to learn his fate in the full knowledge that potential replacements were being sounded out.
McClaren trained the players on Tuesday, Wednesday and Thursday before his departure, with the club next in action against league leaders Leicester on Monday night.
The new man's first home game will be the clash with neighbours Sunderland on March 20 - perhaps the biggest Tyne-Wear derby in many years, with both clubs battling the drop.
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