The England midfielder, who has been keen to leave St James' Park to be closer to his family, looked like he had missed out on the chance to join the Hammers when the deal stalled earlier this month.

West Ham had agreed a fee for the 28-year-old, who can play across the midfield or as a support striker, but the deal hit the buffers when the Magpies decided to up their valuation of the player from around £6million to nearer £8million.

Dyer, who has earned 32 England caps since making his debut in 1999, will link up with a clutch of former Newcastle team-mates including Scott Parker, Craig Bellamy and Lee Bowyer - with whom he had a infamous on-field scuffle in April 2005 - at Upton Park.

West Ham boss Alan Curbishley, who had previously declared the deal dead following Newcastle's change in stance, has already signed Julien Faubert, Freddie Ljungberg and Richard Wright in addition to Bellamy and Parker this summer.