Ahead of their crunch home clash with Wellington on Sunday, the Jets released a statement confirming Stanton's departure from the role he has held since 2023.
Former Socceroos midfielder Mark Milligan, who had a brief playing stint with Newcastle in 2008/09 is expected to be announced as his replacement.
With five rounds of the regular season remaining the Jets are in ninth spot and seven points adrift of a finals place, still holding a slim hope of making the play-offs.
But that hasn't been enough for Stanton to satisfy the club's powerbrokers.
It's believed the two parties couldn't agree on football department staffing levels, other resources, and the direction of the franchise.
"The club's ownership group Maverick Sports Partners and the Board would like to thank Rob for his contribution over the last two seasons in what was a difficult and turbulent time for the Newcastle Jets organisation and wish him all the best for the remainder of the season and for the future," the club said in their statement on Thursday.
"A formal announcement regarding the new head coach who will take the role of the Men's A-League team in 2025/26 will be announced in the near future."
Milligan was an assistant coach at Adelaide United before he took a similar role late last year with Malaysia's national team, which is coached by Australian Peter Cklamovski.
Fellow former Jets players Adam Griffiths and Ruben Zadkovich were also reportedly in the mix but Milligan is a clear front-runner.
The 39-year-old, who made 80 appearances for Australia between 2006 and 2019, retired from playing at the end of the 2020/21 season when he lined up with Macarthur FC, his fourth A-League club.