Manchester United's French defender Raphael Varane (L) vies with Aston Villa's English defender Matt Targett during the English Premier League football match between Manchester United and Aston Villa at Old Trafford
Targett will spend the remainder of the campaign at St James Park and the move could be made permanent during the summer.
The 26-year-old has been a regular in the Villa lineup ever since he completed a £14million move to Villa Park from Southampton in the summer of 2019.
However, Targett has been an unused substitute in recent Premier League fixtures against Manchester United and Everton, with Gerrard handing starts to recent signing Lucas Digne.
The Eastleigh-born defender received praise from the Liverpool legend for his positive reaction following the arrival of Digne.
Speaking last week, he said: “I’m the lucky one because I’ve got two top class left-backs. Matt’s pedigree, we believe he’s a really strong Premier League left-back.
“To have Lucas Digne and Matt Targett makes my life and my job a lot easier so we’re delighted with that.
“We’ve set the challenge and the gauntlet to Matt to take the fight to Lucas for the position and during the month of February the games are going to come thick and fast so we’re going to need two top left-backs.
“That’s the way I see it. I’m happy with having both options.
“The reaction from Matt from coming out of the team has been top class but we expected nothing different because he’s been really good since we’ve come in.”
Targett could make his Newcastle debut when his new side face Everton at St James Park next Tuesday night.