Peter Beardsley has left Newcastle after spending more than a year on leave as the club investigated a claim of bullying against him.
The 58-year-old former England international's departure as Under-23s coach was confirmed by the Magpies in a statement on Tuesday afternoon.
It said: "Newcastle United can confirm that Peter Beardsley is no longer employed by the club.
"We are grateful for the contribution Peter has given over the years as a player, coach and ambassador and we wish him well for the future.
"The club will make no further comment at this time."
Newcastle-born Beardsley, who made more than 300 appearances for the club in two spells during an illustrious playing career which also brought 59 England caps, strongly denied the allegations.
He said in a statement after his departure was confirmed: "The time is now right for me to seek a new challenge and I wish the players all the best and the supporters the success they deserve.
"I have always honoured my contractual obligations of confidentiality to the club and maintained my silence, which has in itself been very difficult.
"I am incredibly grateful for the tremendous support I have received and I look forward to the future."
Newcastle launched an investigation into a complaint made by then 22-year-old midfielder Yasin Ben El-Mhanni and backed by team-mates in January last year.
Beardsley agreed to take a period of leave as managing director Lee Charnley conducted a probe, with Ben Dawson taking over his duties.
In a statement released through his solicitors at the time, he refuted the claims.
He said: "Peter Beardsley is aware of inaccurate media reports which result from unauthorised leaks. Allegations of unfair treatment have been made, which are currently being investigated.
"Peter Beardsley categorically denies the allegations. It is hoped the investigation will conclude quickly.
"Peter Beardsley will not be making any further comment at the present time and until investigations conclude. Peter respectfully requests that his privacy and that of his family is respected."
Newcastle have not revealed the outcome of Charnley's investigation.
Beardsley began his career at Carlisle and also had spells with Vancouver Whitecaps, Manchester United, Liverpool, Everton, Bolton, Manchester City, Fulham, Hartlepool and Doncaster as well as the Magpies during a lengthy playing career which saw him thrill fans with his skill and vision.
El-Mhanni, now 23, was released by Newcastle last summer after making two senior appearances, both in the FA Cup, and is now on the books at League One Scunthorpe.
