According to a statement from Newcastle, which was bought by a Saudi investment company for two weeks, the parties agree to go their separate ways.
As the results did not materialize, Bruce has come under increasing pressure.
With the controversial change of ownership - which makes Newcastle the Premier League's richest club - his future was more or less decided.
Bruce is not seen as the man to lead the club forward and up, but he had to stop to make his thousandth match as manager this weekend, the 2-3 loss to Tottenham.
Bruce said after the change of ownership that he would understand if he was replaced.
On the club's website he says:
"I am grateful to everyone involved in Newcastle United for the opportunity to lead this unique football club.
I would especially like to thank the coaching staff, the players and the management staff for their hard work.
It has been up and down, but they have all given their all in difficult times and should be proud of their efforts. ”
For the time being, Graeme Jones will take over Bruce's job, most recently against Crystal Palace away on Saturday.
Speculation about who will lead the club in the long run has been extensive recently.
Rome's former coach, the Portuguese Paulo Fonseca, is a name that is frequently mentioned in the British media.
The new owners have promised to spend a lot of money on new acquisitions when the transfer window opens in January.
National team defender Emil Krafth's future in the club can be affected by the player turnover that awaits.
He has had sporadic playing time this season.