It means that the unhappy marriage of Ashley and Newcastle will continue for the foreseeable future, although he has pledged to bolster the Championship leaders' hopes of promotion by pumping in £20 million of his own money.
Related ArticlesMoat's Newcastle takeover plans in doubtMike Ashley rejects Barry Moat's £80m takeover offerChris Hughton revels in Newcastle winNewcastle 2 Doncaster 1Kevin Keegan wins £1.5m costs in Newcastle caseScunthorpe 2 Newcastle 1A club statement, published on its official website at 10pm, said: 'Newcastle United are delighted to announce that Chris Hughton has been named the permanent manager of the club, his contract will run until the end of the 2010/11 season.
"At the same time the club has confirmed that it has been withdrawn from sale and is no longer on the market.
'The club had been trying to broker a deal with a number of prospective buyers in recent months, however, none of those deals came to fruition.
'With regard to the possible sale of the club to Barry Moat, that particular bid has now fallen through due to the cash price of £80 million not being met.
'In confirming the news, Mike Ashley stated that he is totally committed to the future success of Newcastle United and will be focusing on gaining promotion back to the Premier League. Mike will put a further £20 million into the club this week.
'Whilst confirming these two matters, Newcastle United now aims to move forward on and off the pitch.
'The club aims to maximise its commercial revenues; this includes renegotiating its club sponsor and kit deal, which expire at the end of this season, as well as welcoming offers for the stadium naming rights for next season.'
Ashley bought the club for £134 million two years ago and first tried to sell the club a year later when it was brought to its knees following the resignation of Kevin Keegan.
He decided to try to sell again when the club was relegated last May and his decision to take it off the market represents another snub for Alan Shearer, the club's former captain and interim manager, whose hopes of taking the helm rested with Moat.
Derek Llambias, the club's managing-director of Newcastle United, added: 'We are delighted that Chris has accepted the post of full time manager.
"He has done a terrific job this season and we wish him every success for the rest of this season and beyond. He will continue to receive our full backing and support.'
For his part, Hughton said: 'It is a very proud day for me to be named as the manager of this magnificent football club.
"I thank Mike and Derek for their support and will be doing everything in my power to get the club back into the Premier League at the first time of asking.
'Having the unequivocal backing of the players has helped me enormously and I would also like to thank Colin Calderwood, Paul Barron and the rest of the backroom staff who have never been anything but tremendously supportive to me this season.'