The full-back left Stamford Bridge in a £5m deal with Southampton two years ago without playing a game for the Blues.
Included in the deal were buy-back and sell-on clauses, which allowed Chelsea to re-sign Livramento for a fee of around £50m. However, they decided against taking up this option as Newcastle’s interest emerged.
Nonetheless, they have quadrupled their initial profit on the 20-year-old after the Toon completed a £32m deal for him on Tuesday.
Southampton agreed to a sliding scale sell-on fee in 2021, which meant Livramento’s former club banked an increasing amount of profit as his fee grew. That is thought to have been worth around £15m of his move to Tyneside.
Newcastle have signed the player up until 2028 ahead of their return to the Champions League, as understudy to first-choice right-back Kieran Trippier.
Livramento said: “I'm really excited to have signed for Newcastle United and I'm looking forward to playing in front of the fans.
“I was here for the games over the weekend; even though they were friendlies, there were so many fans and they were still so loud so I can't wait to see what it feels like to play in front of them in a Premier League or Champions League game.”
Manager Eddie Howe added: “Tino is a very talented young player with an exciting future ahead of him so we are delighted to sign him. At 20, he already has lots of attributes that I admire but he also has the potential and drive to really grow with this team. I'm looking forward to working with him and to seeing him develop in a Newcastle shirt.”
