Falcons have had the bank's name on it's shirts for the last 10 years
Northern Rock has revealed it has decided to end its 10-year sponsorship of Newcastle Falcons.
The bank, who also sponsor Newcastle United football club, claimed it was a tough decision but said it was taken in the best interests of the business.
"We reviewed all our sponsorships and we are not in a position to renew the deal," a spokesman told BBC Sport.
"At the moment the deal does not offer a strong returning investment and does not represent a strategic fit."
The spokesman added: "We've been proud to be associated with the club for the last 10 years and we wish the Falcons the best for the future."
In May 2008, Northern Rock ended their ties with Durham County Cricket Club, but have revealed they will remain sponsors of Newcastle United.
It has given us the opportunity to really take stock of our inventory and review what we have to offer the incoming sponsor, both on and off the field.
Falcons chief executive David Bell
Meanwhile Falcons chief executive David Bell has remained upbeat despite the news.
The club would not reveal the value of the deal but have confirmed they are talking to potential new sponsors ahead of the 2010-11 season.
"Naturally it is disappointing to end a 10-year relationship. However, we do see this as a positive development," Bell said.
"It has given us the opportunity to really take stock of our inventory and review what we have to offer the incoming sponsor, both on and off the field.
"We are looking for a sponsor that will also be visible in the many 'off-field' and community activities we undertake throughout the North East."
The bank once sponsored a quartet of North East clubs, with the Newcastle football, basketball and rugby union clubs, and Durham cricket club in their portfolio.