Kuqi has been looking for a new club since reaching an agreement with Swansea last month to have his contract terminated.
And Newcastle manager Alan Pardew, who has been looking for a new striker since the departure of £35m man Andy Carroll, has opted for the former Blackburn striker as a short term solution.
Pardew had also been considering Jeremie Aliadiere, Francis Jeffers and Ewerthon, but he has ultimately decided that Kuqi is the right choice on both a football and financial front.
Pardew said: "We needed another option up front because we're light there due to the temporary loss of Shola Ameobi (who has fractured his cheekbone) and Shefki will provide us with that.
"He's match fit and knows the English game well having been in the country for the best part of ten years. He's ready straight away and that's what we wanted. "Shefki is a good, honest pro who will give us a physical presence from the bench."
Kuqi has made almost 500 appearances and he could figure against Blackburn on Saturday.
The 34-year-old first moved to England ten years ago when he played for Stockport before moving on to Sheffield Wednesday, Ipswich and then Rovers.
He also played for Crystal Palace and Derby before joining Swansea.