The Northern Ireland international impressed the St Andrew's club following an 11-game spell last campaign.
And now the 22-year-old from Derry is determined to make an impression under manager Lee Clark with the new Championship season just around the corner.
"I am really looking forward to it," Ferguson said.
"I had a meeting with the (Newcastle) manager and he said he wanted me to get out and have a full season of games.
"I am really happy it has happened like this.
"It's good for me to get experience and come back to Birmingham.
"I just want to play as many games as I can and help the team as much as I can.
"I came for the last two months and that makes it a lot easier this time. I know all the lads and staff here.
"And the loan being over a season, that's good for me - and hopefully Birmingham, too."