Al-Ahli's Matthias Jaissle is the favourite to replace him. Howe, 48, leaves following a difficult campaign in which Newcastle finished 12th in the Premier League, having lost 17 of their 38 league matches — a sharp comedown after the club's stronger recent seasons under him.
Howe's tenure nonetheless included Newcastle's first major domestic trophy in 70 years, winning the League Cup in 2024-25, along with two separate periods of Champions League qualification, in 2023 and again in 2025.
"After a period of personal reflection, I have decided that now is the right time for me to step away from my role," he said in a statement, before expanding on his reasoning.
"After nearly five years of giving my life, heart and soul into the club with unrelenting energy, I feel that it is in the best interests of both myself and the club to step away, recharge and take a break. Although it's been incredibly difficult to make this decision, I know in my heart that it's the right one. It has been the privilege of my lifetime to have been the manager of Newcastle United."
Newcastle said the process to appoint Howe's successor is already at an advanced stage, with Jaissle strongly tipped for the role. Howe's exit also takes his backroom team with him: coaches Jason Tindall, Graeme Jones, Stephen Purches and Simon Weatherstone, along with head of performance Dan Hodges, will all leave St James' Park alongside him.
The departure comes amid a turbulent summer at the club, with Newcastle United having already sold Alexander Isak to Liverpool last year and this window losing Sandro Tonali to Tottenham and Anthony Gordon to Barcelona, while talks over the future of captain Bruno Guimarães continue.