The 23-year-old joined Inter last summer from Bundesliga side Hertha Berlin.
Recall that Lazaro made his international debut against Iceland in 2014. He has 28 caps and three goals for his country.
According to report gathered, he will wear squad number 23 for the Magpies.
"I'm very happy to be here and can't wait to meet all my team mates, get out on the training pitch and hopefully get a lot of victories in the future," Lazaro said.
"I've only heard great things about the club. I've had good talks with the coach so I feel very happy to be here now. Those conversations convinced me that this is the right place for me to come."
Head coach Steve Bruce added: "Valentino is a quality player who'll add to us in attacking areas of the field, where we need to improve. He can play in a few positions but he is a natural winger with an excellent delivery.
"We have worked hard to get him ahead of other clubs, so I'm delighted with what we've done. Along with Nabil Bentaleb, he'll give us strong options."
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