The deal does not include an obligation or option for Newcastle to buy Rose in the summer.
Rose becomes Newcastle’s third January recruit following the signings of Nabil Bentaleb and Valentino Lazaro.
“It’s been clear that we’ve needed some help in the left-back position so we’re absolutely delighted to get a player of Danny’s calibre through the door,” said Newcastle boss Steve Bruce.
“He has proven quality, as he’s shown over several years for club and country, and is a class act.
“It’s a big coup for us to get him here and we’re looking forward to working with him.”