Hughton has been given a contract until the end of the 2010/11 season.
But perhaps more significantly, Magpies owner Ashley has been unable to sell and has vowed to plough another £20million into the club this week.
Ashley has spoken to various prospective buyers in recent months without being able to close a deal. The club confirmed on Tuesday night that Barry Moat's bid has fallen through after he failed to come up with the price of £80million.
A statement explained the club's long-term plan - including renaming St James' Park.
It said: "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."
On Hughton's appointment, managing director Derek Llambias said: "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."
Hughton added: "It is a very proud day for me to be named as the manager of this magnificent football club."