Owen walked onto the pitch at St James's to a rapturous reception this afternoon, meeting his new fans for the first time.
The Toon Army was out in force with over 20,000 turning up to cram the Leazer's end (Sir John Hall stand) of the stadium to give their biggest Geordie welcome.
Number 10 replica shirts were held up proudly as U2's Beautiful Day competed with deafening chants of 'We love you Owen.'
The reception rivalled Shearer's when he first signed and Owen told the crowd he would 'guarantee the goals' that the club sorely needs.
At a press conference Souness claimed that the addition of Owen to the line up would help Newcastle finish in the top four this season.
Owen said: "The bottom line is I wanted to go back in the Premiership and get up on a Saturday and play football.
When you hear the supporters, manager and chairman saying they really want you that is a nice thing as well."
Owen confessed he didn't have the same passion for football during his stint at Real Madrid as he did back home saying the Premiership was 'his league'.
Owen admitted he had doubts before coming to Newcastle. He said: "One of the reservations about coming to Newcastle was European football but what would be the point of coming on a year loan if I got them into Europe and then left?"
Chairman Freddie Shepherd said: "Quality is always expensive but now we've got four great signings."
Graeme Souness added: "There's only a handful of people who can fill Alan Shearer's shirt. Michael has always got goals and he'll do the same here.
"The chairman fell off his seat when I said this is the one I really want, but we've got him and we're delighted. Michael is an honest up front guy and a great player."
Owen admitted that Liverpool was 'one big option' but said: "I don't think Liverpool need too much comfort. They're the reigning European champions and had some great success with a new manager.
"Obviously I'd been at Liverpool for a long time, I still have friends there and they will obviously be a part of my life because I played there so long.
But it's a new chapter now and I'm really looking forward to it. Seeing the reception I've got, I just wish there was a game tomorrow.
"I've been honest all along, like I've said. Just like Alan Shearer had a decision to make a good few years ago, when so many teams were in for him, then I had that decision as well and it's a great decision to have.
"I have an attachment to Liverpool so if that deal could have happened then that would have been one big option but, as the deadline approached, I didn't see any way that one would be possible.
"So it came down to staying at Real or coming to Newcastle. Obviously I had other options but they were the main realistic ones and there was no question in my mind.
Fans were thrilled to see their hero as he walked from the tunnel and onto the pitch. Owen held his daughter above him as they both donned black and white number 10 strips.
Callum McGlenn, 21, of Cruddas Park, Newcastle, said: "I'm really happy now I've seen him and all credit to Souness, he should definitely stay. I bought a number 10 shirt for my son as soon as I found out yesterday."
Tom Norris, 69, retired, travelled from Swindon to see Owen. He said: "I'm a life long fan and it's great Owen has signed for us. My friend isn't so happy because he's a Liverpool supporter but what can he do.
"This is a great choice for us and he got an amazing reception today to show how much we appreciate him."
Gary Hankinson, 41, a support worker from Stakeford, Northumberland said: "This is like the final piece of the jigsaw coming in, I would love to see Carlton Cole, Selano and Bentley play for us too."
His wife, Michelle Hankinson, 39, an office manager, said: "We had to come down and see Owen - he got the best reception I have ever seen, I don't think he would have got one anywhere else in the country as good as this."
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