Georginio Wijnaldum has become the third most expensive signing in Newcastle's history after putting pen to paper on five-year deal.

The 24-year-old Holland international midfielder completed his move from PSV Eindhoven on Saturday morning for a fee understood to be in the region of 20 million euros, around £14.4million.

Wijnaldum said: "I'm delighted to be a Newcastle United player.I felt the time was right for me to move and the Club have shown they really want me, so I'm very happy to be here."

Only Michael Owen and Alan Shearer have cost the Magpies more, and his capture represents a statement of intent from owner Mike Ashley, who has been criticised in recent years for his concentration on potential rather than proven quality.

Wijnaldum, who becomes the fifth Dutch player on the books at St James' Park along with Tim Krul, Daryl Janmaat, Vurnon Anita and Siem de Jong, said: "There are a few players here who are from Holland – I know them well and they will help me feel at home in Newcastle.

"I know the club has a great stadium with great fans. I want to play here as soon as possible – I want to feel the atmosphere and hear the crowd. I cannot wait to get started."

News of Wijnaldum's arrival will come as a major boost to head coach Steve McClaren, who insisted on Thursday that he was not frustrated by the apparent lack of action in the transfer market and remained excited at the prospect of landing the players the club is targeting this summer.

McClaren said: "This signing is a real statement for the club. It is a big transfer for a very good player and I am delighted to have Gini here at the club.

"He has lots of energy and a great tempo to his game. He is very skilful, but is also capable of playing box-to-box, and – importantly – he can score goals.

"He is at the right age and the right fit for Newcastle. He is a leader as well and you will see that. He is someone who always wants the ball, can deal with it, and we need that kind of character in the team."

The breakthrough will have come as a relief to managing director Lee Charnley, the man responsible for carrying out negotiations and investing the money Ashley has now promised to spend in greater proportions than in the recent past.

Wijnaldum, a Rotterdam-born player who came through the ranks at Feyenoord, made 130 appearances for PSV and scored 47 goals during his four seasons at the Philips Stadion.

Forty of those appearances and 16 of the goals came as captain last season as the club cruised to the Eredivisie title, finishing 17 points ahead of closest rivals Ajax.

He has 19 senior caps and represented his country at the World Cup finals in Brazil last summer.

McClaren will hope Wijnaldum is the first of a series of signings as Newcastle attempt to significantly strengthen a squad which struggled to retain its Barclays Premier League status last season.

Anderlecht striker Aleksandar Mitrovic is a serious target with efforts to land QPR's Charlie Austin having so far come to nothing, while Wolfsburg frontman Bas Dost has also been in their sights for some time.

McClaren and his players, who opened their pre-season campaign with a 1-0 win at Gateshead on Friday evening, are due to fly out to the United States on Sunday ahead of fixtures against Club Atlas, Sacramento Republic and the Portland Timbers.

PSV technical director Marcel Brands said on his club's website: "We've unfortunately lost a great footballer and a great person, but Georginio goes with our complete blessing.

"He leaves as captain of a champion team, which is something both he and we can be proud of."