The 20-year-old arrived at Trent Bridge today and goes straight into the team for the Frizzell County Championship Division One match with Kent, which starts tomorrow.
Said Notts Director of Cricket Mick Newell: "At the moment we only have two fit seamers in Ryan Sidebottom and Mark Ealham, so we had to make a move to boost our bowling department.
"I welcomed the move during the winter to introduce the loan scheme and with Charlie Shreck recovering from a back operation, it was always in my mind that we might make use of it.
"To be honest, I hadn't expected it to happen so quickly but when we were hit by more injuries Oliver immediately came to mind.
"He played against us in the opening Second XI match of the season and looked very impressive. He's 6ft 5ins tall, hits the deck hard and has a bit of pace.
"He hasn't had much chance at first team level with Lancashire as they have three England seamers but I think he has a lot of potential. He goes straight into the side and will take the new ball with Sidebottom."
Notts are currently missing Greg Smith,who has a pulled hamstring, Paul Franks with a side injury and AJ Harris with a broken thumb - as well as Shreck.
Newby's deal is for an initial four week period but he can be recalled by Lancashire if a first team spot becomes available.
He said: "I'm very grateful for the opportunity Notts are giving me and I'm looking forward to playing at Trent Bridge.
"I feel that I've been bowling very well this season but James Anderson's return has prevented me playing first team cricket.
"The chance to learn from the likes of Stephen Fleming is very exciting. I'm bound to learn from the experience and I can't wait to get on the field."
THURSDAY 21 SEPTEMBER 2017
ENGLAND v WEST INDIES