Cathro arrived at St. James’ Park from Valencia in the summer of 2015, and was part of the coaching teams of both Steve McClaren and Rafa Benitez during his time on Tyneside.
United manager Benitez said: "I would like to wish Ian the very best success with his first head coach role. When a coach has the opportunity and the desire to progress his career in management, it is always very important to allow them the freedom to move on and develop themselves. “We all send Ian our good luck for his future and thank him for his good work for Newcastle United. We will not be appointing a replacement to Ian in the immediate future. We will take some time now to decide what is best for us, our team, coaching staff and the club."