"Newcastle United can today confirm that Hatem Ben Arfa and the Club have reached an agreement to terminate the contract between both parties with immediate effect by mutual consent," the Premier League club said on their website.
"Newcastle United wishes Hatem all the best for his future."
Nice said on Saturday that Ben Arfa would have a medical on Monday.
The player, who has 13 caps and scored two goals for France, joined Newcastle from Olympique de Marseille in 2010 but fell out of favour at St James' Park after former manager Alan Pardew raised questions about his fitness and work ethic.
Ben Arfa moved on loan to Hull City at the start of the season but that deal was terminated last month following a disagreement with manager Steve Bruce.
(Reporting by Alan Baldwin, editing by Mark Meadows)
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