"The club understands its current league position and acknowledged it was very disappointing," Newcastle said.
Manager Steve McClaren has invested heavily in the squad, spending about 80 million pounds ($111.62 million) since taking over last year.
"The club had previously stated it would not achieve all of its aims within two transfer windows but given its transfer activity to date, it absolutely accepted a higher league position was expected at this stage," the club said.
Newcastle have not won a major trophy since 1969.
They have won only twice in their last 11 games and travel to 10th-placed Stoke City on Wednesday.
($1 = 0.7167 pounds)
(Reporting by Shravanth Vijayakumar in Bengaluru, editing by Ed Osmond)
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