Scrum-half Fury, 26, who has three Wales caps to him name including appearances on the 2008 tour of South Africa and in the 2009 RBS Six Nations Championship, joined Dean Richards’ charges last September after representing Wales Sevens on the IRB and FIRA circuit.
Prior to his exploits in the Wales Sevens fold, the Swansea-born half-back had a brief spell with Bath Rugby after recovering from a serious knee injury.
Enjoying his rugby on Tyneside, Fury crossed the whitewash four times in 27 appearances in all competitions last season. After starting each leg of the play-off semi-final as well as the first leg of the final at Bedford Blues, injury prevented Fury from playing in the RFU Championship decider.
The talented Welshman will compete with Chris Pilgrim and experienced Scotland internationals Mike Blair and Rory Lawson for the coveted No.9 jersey.
Fury is delighted to have signed on the dotted line, saying: “I am buzzing to have re-signed for Newcastle Falcons and I am very much looking forward to playing with the boys in front of our passionate fans.”
Newcastle director of rugby Dean Richards said: “Warren put in some solid displays throughout last season, particularly at the back end of the campaign.
“There will certainly be some stiff competition for the scrum-half position, and I am sure Warren will relish the challenge.”