Earlier this week Newcastle announced that the club had opted to exercise a mutual contractual clause that allows the club to end the Virgin Money deal at the end of the 2012-13 season.
Managing director Derek Llambias in November stated the club was targeting a deal worth up to £10 million a year that was thought to be a combined Shirt and Stadium Sponsorship deal.
Virgin Money in January agreed a two-year deal with Newcastle to replace Northern Rock as sponsors
“We have enjoyed a very successful partnership with Virgin Money which we thank them for,” Llambias said on Monday.
“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.”
Owner Mike Ashley once again looks to propel the Magpies into "another" league after successfully securing prime JJB assets in the breakup following administration.
Sports Direct will take control of 20 stores straight away, with the acquisition of the remaining 40 subject to approval from the UK competition authority safeguarding at least 1,000 jobs at the struggling chain.