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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.

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.

Previously, 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 said: "I think it was well documented that I wanted to be nearer to my family, but I also see West Ham as a club that is really going places. A lot of the players that have signed have a bit of a point to prove as have the players who came so close to relegation last season so everyone shares that hunger which can only be a good thing."

West Ham manager 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.

Curbishley added: "We're delighted to get the player in. If you look at his history over the last couple of years he missed a lot of games with his hamstring - but once he got it sorted, he played 33 games and scored eight goals

"He also played for England against Spain, Brazil and Andorra - so he is a current England international, and we are delighted to have him on board."