The former England international, who had two spells at St James's Park, has been charged with the task of recruiting the young talent in the United Kingdom and abroad while retaining his involvement on the coaching side.
"A large part of our club's future rests with our youth, so this is a terrific role for me," said the 50-year-old.
"Helping bring exciting young talent to Newcastle United will make me very proud.
"I spoke with the manager today and Alan [Pardew] made it very clear how important this job is and what a difference he believes I can make to the club and its development."
Beardsley scored over 100 goals during his time on Tyneside.