The 48-year-old left his role as a member of Frank Lampard’s coaching staff in February to become assistant to Trabzonspor’s former manager Huseyin Cimsir.
Following Cimsir’s departure from the club last month, Newton took temporary charge of Trabzonspor for the last two games of the season, beating Kayserispor 2-1 on the final day of the league season and Alanyaspor 2-0 in last Wednesday’s Turkish cup final.
The win over Alanyaspor meant Trabzonspor won their first trophy in a decade.
A statement from Trabzonspor on Sunday said: “Our board of directors has decided to continue in the new season with Eddie Newton as coach. We wish Newton success in his post.”
Newton was assistant to Roberto Di Matteo when Chelsea won the UEFA Champions League and FA Cup in 2012.
Only six black or non-white managers are currently employed by the 92 clubs in England’s professional leagues, and Newton says the lack of opportunities for black managers played a role in his decision to move abroad.
Speaking to Sky Sports last week, Newton said: "I've been trying to become a number one for a while and just didn't see it happening.
"The fact is that I've moved to another country and it's taken six months to become caretaker manager so... I've been working in football all my life so that's why I felt there was more opportunity over here, so I had to take the chance, basically.
"I think I got to the point where I thought I have to take this opportunity, I have to take this chance now or maybe it will never happen for me."