The agreement would otherwise run until the end of the 2013/2014 season, but either party had the right to terminate the agreement early by giving notice – the club has decided to do that.
Virgin Money remains sponsor until the end of the current season and the Virgin Money name will continue to be worn on the iconic black and white shirts until then.
Jayne-Anne Gadhia, chief executive at Virgin Money, said: "We were delighted to sponsor Newcastle United given the Club's importance to the North East and had hoped that this would be a relationship that would flourish for years to come.
“However, they have found a different option and we have to respect that.
“We remain sponsor until the end of the current season and the Virgin Money name will continue to be worn on the iconic black and white shirts until then.
“We hope it is a really successful season and, of course, we wish the team and fans all the very best for the future, as they strive to build on Newcastle United's proud heritage.”
Derek Llambias, Newcastle United managing director, said: "We have enjoyed a very successful partnership with Virgin Money which we thank them for.
"However, we have decided to end the agreement early and we will be announcing a new sponsorship partner shortly which represents an excellent commercial deal for both parties."
