Antonio Conte has confirmed that Kenedy is joining Newcastle on loan from Chelsea.
The move will give Kenedy, 21, the chance to play first-team football for the remainder of the campaign as his first-team chances at Chelsea have been limited.
He has not featured in the Premier League this season, with all five of his appearances coming in cup competitions.
“Yes I think he’s going on loan to Newcastle,” said Blues boss Conte.
“For sure we are talking about a young player with great potential.
“At this moment in his career he needs to play with regularity and I think going to Newcastle is a great challenge for him.”
Conte hopes Kenedy can follow the example of defender Andreas Christensen, who has established himself as a first-team player at Chelsea after spending two seasons on loan at Borussia Mönchengladbach.
The Italian also believes Kenedy is better equipped for Premier League football than during his unsuccessful spell at Watford last season.
He barely featured after joining the Hornets on a season-long loan and therefore returned to Chelsea last January.
Conte said: “I think this way is good for the club and we have used the same way for Christensen. Now Christensen is a Chelsea player who is always in the starting 11.
“I think it will be good for Kenedy but at the same time he has to know that he must be ready to fight to play at Newcastle, because don’t forget in his first six months at Watford he struggled a lot to play and played only 24 minutes.
“But I think now he is more ready. Now he can show his potential by going out on loan.”
Meanwhile, Alvaro Morata and Cesc Fabregas have been ruled out of Chelsea’s Carabao Cup semi-final second leg at Arsenal.