The Wellington Phoenix midfielder will cross the Tasman and call the Hunter home, where he will work with former mentor, Ernie Merrick.
At 22 years-of-age, Ridenton boasts 72 Hyundai A-League caps and has represented the New Zealand national team at a junior and senior level.
Ridenton made 25 appearances in the 2017/18 Hyundai A-League season and was awarded the club’s Revera U23 Player of the Year.
Jets boss Ernie Merrick said that the signing of Ridenton further strengthened the clubs midfield stocks.
“Matthew is an excellent player, and having worked with him during my time at the Phoenix I know the sort of potential he possesses as a player,” Merrick said.
“He’s also a great person and character, I have no doubt he’ll fit into the club and the community really well.
“Matt will offer plenty for us in the middle of the park, provides great depth for our squad and I look forward to seeing the contribution he can make over the next two seasons.”
Ridenton said he was excited about continuing his career in Newcastle, under the guidance of his former coach.
“I’ve worked with Ernie previously and after speaking with Joel Griffiths and Lawrie McKinna, the club seemed like a really good fit for me,” Ridenton said.
“They’ve come off the back of a really strong season and things are going really well for the Jets both on and off the pitch – I’m looking forward to being part of that.
“Looking at the squad the club has already put together for next season it’s set to be another exciting year and I can’t wait to get stuck into pre-season in Newcastle.”
Ridenton will join his new teammates for the first time when pre-season starts in June 2018.