Mahon had been on a pay-as-you-play deal with the Magpies since the start of the season but manager Martin Allen has now persuaded him to commit for a longer period.
"He's no spring chicken, but he has played an important part in the recipe for our recent success. He's well respected in the dressing room, never missed training and is a good guider for all of our players."
The 34 year old has made 8 league appearances so far this season.
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