"Newcastle United can confirm that Steve Bruce has left his position as head coach by mutual consent," a statement on the club's official website read.
"He leaves the Magpies after more than two years in charge, having steered the club to 13th and 12th-place finishes in the Premier League and reaching the quarter-final stage in both the Emirates FA Cup and Carabao Cup during his tenure.
"Newcastle United would like to place on record its gratitude to Steve for his contribution and wishes him well for the future."
Bruce himself has commented on the parting of ways.
"I am grateful to everyone connected with Newcastle United for the opportunity to manage this unique football club," he said, according to the Magpies' website.
"I would like to thank my coaching team, the players and the support staff in particular for all their hard work. There have been highs and lows, but they have given everything even in difficult moments and should be proud of their efforts.
"This is a club with incredible support, and I hope the new owners can take it forward to where we all want it to be. I wish everyone the very best of luck for the rest of this season and beyond."
It is understood that assistant coach Graeme Jones will take charge on an interim basis as the club searches for a new manager.