The Magpies signed their two-year deal in January but have taken the option available to them to end to that contract after this season and not see out the final 12 months.
"We have enjoyed a very successful partnership with Virgin Money which we thank them for," said managing director Derek Llambias.
"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."
Virgin Money will remain as club sponsor until the end of the current campaign.
"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," said Virgin Money chief executive Jayne-Anne Gadhia.
"However, they have found a different option and we have to respect that."