In a tough eighth season with the club, Ponga was this week linked with a move to overseas rugby union, with reports claiming he had engaged the services of an agent in New Zealand.
It came amid speculation coach Adam O'Brien could be shown the door at the end of a campaign that appears destined to finish without finals football.
Newcastle have regressed in O'Brien's sixth year at the helm, going from elimination finalists in 2024 to the league's worst attacking side by the numbers through 20 rounds.
Queensland representative Ponga, meanwhile, had a quiet campaign by his high standards before being sidelined with a season-ending foot injury last month.
Knights players this week said they were unaware of Ponga's future plans when pressed by media.
But as Newcastle fight losses on the field and headlines off it, the club's best player met with club bosses on Thursday to reaffirm his commitment.
He then took to social media to insist he would remain loyal during the final two years of his contract.
"Committed to the end of 2027. Excited about the vision of the club. Appreciate those that support me!" Ponga posted on Instagram.
The news is a boost to a Knights side that would likely have needed to move Fletcher Sharpe out of the halves to replace Ponga at fullback had he left for the 15-man code next year.
That would have left Newcastle without a clear front-runner to partner big-money recruit Dylan Brown in the halves when he arrives from Parramatta in 2026.
As it stands, Brown and Ponga are poised to join forces and help reinvigorate a Knights side that has not tasted premiership success since 2001.
Ponga's announcement came only hours after the Knights' greatest-ever player Andrew Johns encouraged the club to let their marquee man walk if he wanted to.
The legendary halfback pointed out Ponga had signed with Newcastle at their lowest ebb, following a second-straight season finishing last in 2016.
Since his arrival in 2018, the Knights have played finals in four of seven full seasons, including a berth in the second week of the 2023 post-season.
"He has carried the club," Johns told the Freddy and the Eighth podcast.
"So I would say thank you to Kalyn for what you have delivered to the club. Thank you very much. If you want to move on, so be it. No animosity whatsoever."
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