Hughton is a coach by trade but the Magpies have turned to the 50-year-old as a result of the club's early season form.
The former Tottenham coach has guided the club to the top of the Championship while managing in a temporary capacity so far this term amid numerous off-field distractions.
Hughton believes the decision finally gives the club the stability it needs after a lengthy period of uncertainty with a host of names, including local legend Alan Shearer, linked with the vacant post.
"The opportunity to manage a great club is a very, very proud moment for me," he told Sky Sports News.
"In the end it was not too much of a surprise to some. It was something we have been speaking about for the last couple of weeks and what it does is give the club perhaps the stability it needs."
Plan for the futureHughton also believes the news that under-fire owner Mike Ashley has taken the club off the market means the Magpies can now plan for the future.
"It is certainly a way of looking forward. Over the past months and year making the headlines has been the sale of the club," he added.
"It has been an ongoing thing. The fact that we can now look forward and plan for the future off the pitch and on pitch is something this club has needed."
Ashley also announced that he would be putting in £20million of his own funds to help with the running of the club, and while Hughton believes the club will back him in the January transfer window, he doesn't expect to see too much of the cash injection.
"I think the figures being mentioned would have had to have been invested in the club anyway," he stated.
"We have a high wage bill at this club so I think that was expected anyway.
"However, I have been told that the club will back me with whoever I endeavour to bring in in the transfer window and, of course, develop this squad over a period of time."