Fury, 28, won two Wales caps in 2008 and joined the Falcons two years ago.
He will challenge for the number nine shirt next season with Scotland international Mike Blair and Ruki Tipuna, who will shortly move to Kingston Park from Championship title favourites Bristol.
"Warren is a tenacious and determined individual who gives his all every time he walks out on to the park," Newcastle director of rugby Dean Richards said.
"He is also a great character, both on and off the pitch, and I'm really pleased he has re-signed with the club."
COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? email@example.com