The 31-year-old former Korea Republic international's contract was due to expire in the summer, but his last Premier League appearance came in a 5-0 defeat at Leicester City in September and the player and club have now come to a joint agreement which sees him depart with immediate effect.
He signed for the Magpies after his contract with Swansea City expired in July 2018, and made 23 appearances in all competitions. However, only four of them came this season.
Speaking to nufc.co.uk, Ki said: "I am always grateful for our fans' support. It was great honour and happiness of mine to play for such a great club as Newcastle United.
"I never forget the time with Newcastle fans. It is a pity that I could not do better but sometimes in football, there are things I could not overcome.
"Thanks a lot to everybody and so long."
Newcastle United thank Ki for his service and wish him well for the future.