The 31-year-old captain now plans to leave Tyneside in his desire to return home to Argentina as he deals with "personal matters". Coloccini's wife is already believed to have returned to Argentina.
Talks had taken place earlier this week between Coloccini's representatives and officials from Newcastle in a bid to broker a peace deal where the central defender would stay at St James' Park until the end of the season.
However, after extensive discussions they failed to reach agreement.
Now the player is set to quit.
Argentinian side San Lorenzo cannot match Mike Ashley's pay-off price - and they continue to want him for FREE.
They have not been able to find the funding to buy the player from Newcastle. Coloccini's £60,000-a-week salary is way out of their budget. They were unable to negotiate a fee for the player.
The 31-year-old was signed for £10.3m in 2008.
Newcastle were relegated that season but he excelled during the following campaign and established himself as one of the most cultured central defenders in the Premier League.
He signed a new contract and was voted into PFA team of the year, but the last few months have been troubled.
Coloccini does not intend to play against Aston Villa in Tuesday's crucial relegation battle at Villa Park – their next game.
NEWCASTLE 1 READING 2
1. Tim Krul
2. Fabricio Coloccini
3. Davide Santon
26. Mathieu Debuchy
6. Mike Williamson
4. Yohan Cabaye 74'
8. Vurnon Anita 80'
9. Papiss Cisse
22. Sylvain Marveaux 65'
18. Jonas Gutierrez
23. Shola Ameobi
21. Rob Elliot
14. James Perch 65'
27. Steven Taylor
20. Gael Bigirimana 74'
25. Gabriel Obertan 80'
28. Sammy Ameobi
30. Nile Ranger
Adam Le Fondre came off the bench to dump Newcastle deep into relegation trouble as Reading staged another famous fightback.
The substitute struck twice inside six second-half minutes as the Magpies imploded having dominated the opening 45 minutes.
Alan Pardew's men would have been out of sight by half-time had it not been for the heroics of keeper Adam Federici, but led only 1-0 courtesy of the returning Yohan Cabaye's superb 35th-minute free-kick.
But they wilted alarmingly after the break to lose a game they simply had to win in front of a disgruntled crowd of 49,411.
The Royals, who came from 2-0 down to beat West Brom 3-2 last week, left Tyneside having boosted their own survival hopes while significantly denting those of their hosts.
If ever there was a must-win game, this was it for Newcastle after a run of just two wins in 13 Barclays Premier League games which had seen them slide inexorably towards the scramble for top-flight survival.
Promoted Reading arrived on Tyneside as one of only four sides with a worse record than the Magpies, and therefore this was an opportunity the home side could not afford to let slip at the end of a difficult week.
Pardew thought he had landed Marseille striker Loic Remy, only to be gazumped at the death by QPR, and the battle to land the reinforcements Pardew so desperately needs, as well as that to retain the services of skipper Fabricio Coloccini, are ongoing.
But the presence of Mathieu Debuchy, making his home debut, and compatriot Cabaye, making his first start since November 11 after a groin injury, were causes for optimism.
Cabaye's return re-invigorated Newcastle, and it was from his fourth-minute free that they might have taken the lead when the ball fell to the feet of Mike Williamson 12 yards out.
However, the central defender slipped as he tried to steer the ball home.
The lively Sylvain Marveaux saw a 12th-minute shot blocked and Federici had to get down well to keep out Davide Santon's long-range effort two minutes later as the Magpies piled on the pressure.
The Australian excelled himself seconds later to keep out Cabaye's effort from a tight angle and reacted superbly to palm away Cisse's header.
However, the visitors should really have been ahead with 27 minutes gone when they launched a rare foray into enemy territory and Garath McCleary crossed low for Pavel Pogrebnyak, only for the Russian to slide his shot wide of the far post.
But it was largely one-way traffic and the luckless Cisse might have scored twice within as many minutes, but for Federici.
The keeper was in exactly the right place at the right time to claim the Senegal international's 28th-minute volley, although had the ball been a foot either side of him, it would have ended up in the back of the net.
Federici came to the rescue once again on the half-hour when Cisse ran on to Debuchy's perfectly-weighted cross and powered it towards goal, only to see the Royals last line of defence hold firm once again.
But the deadlock was broken 10 minutes before half time in glorious fashion after Marveaux had been tripped 20 yards out by Jobi McAnuff.
Cabaye stepped up to curl the resulting free-kick over the wall and into the top corner with Federici for once rooted to the spot.
It was little more than Newcastle deserved, but they headed for the dressing room at the break knowing the job was far from complete.
As if to illustrate the fact, Jonas Gutierrez was hugely relieved to see the ball fly just wide of the far post after he had attempted to cut out Ian Harte's 47th-minute free-kick with the visitors returning in determined mood.
The home side struggled to rediscover the fluency of their first-half performance, and that encouraged the Royals, who were taking a much more positive approach.
Pogrebnyak might have levelled after 62 minutes after Jimmy Kebe had headed down Danny Guthrie's cross, but he blasted high over.
Pardew moved to close the game down when he replaced Marveaux with the more defensively-minded James Perch three minutes later, but the ploy did not work and Reading forced their way back into the game with 19 minutes remaining.
Kebe was allowed time and space down the right and when Mike Williamson failed to cut out his cross, Le Fondre bundled the ball over the line.
There was worse to come from the home side six minutes later when they failed to deal with a ball into the box and Le Fondre pounced to thump it past the helpless Tim Krul.
Cisse fired wastefully over the top and substitute Gabriel Obertan forced Federici to make a late save in a desperate flurry, but there was no way back from beleaguered Newcastle.
NEWCASTLE UNITED FC 2012/13
Newcastle United Fixtures
Tuesday January 29 2013 19:45 v Aston Villa (A)
Saturday February 2 2013 15:00 v Chelsea (H)
Saturday February 9 2013 12:45 v Tottenham (A)
Thursday February 14 2013 v Metalist (H)
Thursday February 21 2013 v Metalist (A)
Saturday February 23 2013 15:00 v Southampton (H)
NEWCASTLE 1 READING 2 (Cabaye)
Krul, Coloccini, Santon, Debuchy, Williamson, Cabaye (74'Bigirimana), Anita (80'Obertan), Cisse, Marveaux (65'Perch), Gutierrez, Shola Ameobi
Subs: Elliot, S Taylor, Sammy Ameobi, Ranger.
NORWICH 0 NEWCASTLE 0
Krul; Debuchy, Williamson, Coloccini, Santon; Anita (Bigirimana, 84), Perch; Obertan (Cabaye, 57), Marveaux, Gutierrez; Cisse.
Subs not used: Harper, Amalfitano, Sammy Ameobi, Ranger, Tavernier.
NEWCASTLE 1 EVERTON 2 (Cisse)
Krul, Perch (87' Ranger), Williamson, Coloccini, Santon, Obertan (65' Bigirimana), Anita, Tiote (79' Sammy Ameobi), Marveaux, Shola Ameobi, Cisse
Subs: Elliot, Ferguson, Tavernier, Abeid
ARSENAL 7 NEWCASTLE 3 (Ba 2, Marveaux)
Krul, Simpson (82' Ferguson), Coloccini, Perch, Santon, Obertan, Bigirimana (82' Shola Ameobi), Tiote, Marveaux (88' Tavernier), Ba, Cisse.
Subs: Harper, Sammy Ameobi, Mehdi Abeid, Streete.
MAN UTD 4 NEWCASTLE 3 (Perch, Evans og, Ba)
Krul, Simpson, Williamson, Coloccini, Santon, Anita, Perch, Bigirimana (65' Obertan), Cisse (79' Sammy Ameobi), Ba (71' Shola Ameobi), Marveaux
Subs: Elliot, Ferguson, Tavernier,Campbell
NEWCASTLE 1 QPR 0 (Shola Ameobi)
Krul, Simpson, Coloccini, Williamson, Santon, Anita, Tiote (77' Marveaux), Perch, Gutierrez (60' Obertan), Ba, Cisse (61' Shola Ameobi).
Subs: Harper, Bigirimana, Sammy Ameobi, Ferguson.
NEWCASTLE 1 MAN CITY 3 (Ba)
Krul, Simpson (82' Ferguson), Williamson, Coloccini, Santon, Perch, Tiote (74' Marveaux), Anita, Gutierrez, Cisse (79' Shola Ameobi), Ba.
Subs: Elliot, Bigirimana, Sammy Ameobi, Tavernier
FULHAM 2 NEWCASTLE 1 (Ben Arfa)
Krul, Simpson, Coloccini, Williamson, Santon, Gutierrez, Tiote (86' Bigirimana), Anita (86' Marveaux), Ben Arfa (70' Shola Ameobi), Cisse, Ba.
Subs: Harper, Perch, Ferguson, Tavernier
NEWCASTLE 3 WIGAN 0 (Ba 2 - 1 pen, Bigirimana)
Krul, Simpson, Williamson, Coloccini, Santon (49' Ferguson), Marveaux, Tiote (46' Bigirimana) Anita, Gutierrez (75' Sammy Ameobi), Ba, Cisse
Subs: Harper, Shola Ameobi, Ranger, Tavernier
STOKE 2 NEWCASTLE 1 (Cisse)
Krul, Simpson, Coloccini, Williamson, Santon, Anita (87' Sammy Ameobi), Perch, Tiote, Gutierrez, Ba, Cisse (87' Ranger).
Subs: Elliot, Bigirimana, Marveaux, Ferguson, Tavernier
SOUTHAMPTON 2 NEWCASTLE 0
Krul, Simpson, S Taylor (90+1' Perch), Williamson, Santon, Anita (66' Marveaux), Tiote, Gutierrez, Ferguson (46' Sammy Ameobi), Ba, Cisse.
Subs: Harper, Bigirimana, Ranger, Tavernier
NEWCASTLE 1 SWANSEA 2 (Ba)
Krul, Simpson (74' Bigirimana), S Taylor, Williamson, Santon, Ben Arfa, Anita, Tiote, Ferguson (46' Shola Ameobi), Sammy Ameobi (79' Marveaux), Ba.
Subs: Elliot, Amalfitano, Tavernier,Abeid
NEWCASTLE 0 WEST HAM 1
Krul, Simpson (79' Obertan), Steven Taylor, Williamson, Santon, Ben Arfa, Cabaye, Gutierrez (24' Anita), Ferguson, Cisse (45+5' Shola Ameobi), Ba
Subs:Elliot, Amalfitano, Bigirimana, Marveaux.
LIVERPOOL 1 NEWCASTLE 1 (Cabaye)
Krul, Anita, S Taylor, Coloccini, Santon, Perch (26' Simpson), Cabaye (68' Ferguson), Gutierrez, Ben Arfa, Cisse, Ba (49' Sammy Ameobi).
Subs: Harper, Williamson, Shola Ameobi, Obertan.
NEWCASTLE 2 WEST BROM 1 (Ba, Cisse)
Krul, Simpson (61 Cisse), Coloccini, Williamson, Santon, Ben Arfa, Cabaye, Perch, Gutierrez, Ba (72 Sammy Ameobi), Shola Ameobi (61 Obertan).
Subs: Harper, Anita, Steven Taylor, Ferguson.
SUNDERLAND 1 NEWCASTLE UTD 1 (Cabaye)
Krul,Simpson, Williamson, Coloccini (79' S Taylor) Santon, Gutierrez, Cabaye, Tiote, Ben Arfa (83' Obertan), Ba, Shola Ameobi (38' Perch).
Subs: Harper, Anita, Cisse, Ferguson
NEWCASTLE UTD 0 MAN UTD 3
Harper, Santon, Perch, Williamson, Ferguson (63' Anita), Ben Arfa, Tiote (80' Bigirimana), Cabaye, Gutierrez, Cisse (63' Shola Ameobi), Ba
Subs: Alnwick, Simpson, Obertan, Sammy Ameobi
READING 2 NEWCASTLE 2 (Ba 2)
Harper, Perch, Williamson, Steven Taylor (Tavernier 56), Santon, Ben Arfa, Tiote, Bigirimana (Ferguson 70), Gutierrez, Cisse (Shola Ameobi 69), Ba.
Subs not used: Elliot, Anita, Obertan, Sammy Ameobi.
NEWCASTLE 1 NORWICH 0 (Ba)
Harper, Perch, Williamson, Steven Taylor, Santon, Ben Arfa (Shola 85mins), Anita (Tiote 76 mins), Cabaye, Jonas, Cisse (Obertan 70 mins), Ba
Subs unused: Elliot, Tavernier, Bigirimana, Sammy Ameobi
EVERTON 2 NEWCASTLE 2 (Ba 2)
Harper; Perch, Williamson, Taylor, Santon; Anita, Cabaye (Bigirimana 93), Gutierrez; Marveaux (Ba 46), Ben Arfa; Cissé (Shola Ameobi 80).
Substitutes not used Elliot (g), Gosling, Obertan, Tavernier.
NEWCASTLE 1 ASTON VILLA 1 (Ben Arfa)
Krul, Simpson (Bigirimana 38), Steven Taylor, Coloccini, Santon, Ben Arfa, Cabaye, Anita, Gutierrez (Marveaux 86), Ba (Obertan 86), Cisse
Subs not used: Harper, Williamson, Gosling, Amalfitano
CHELSEA 2 NEWCASTLE 0
Krul, Simpson (Ryan Taylor 64), Steven Taylor, Coloccini, Santon (Marveaux 74), Ben Arfa, Anita, Cabaye (Perch 77), Gutierrez, Ba, Cisse
Subs not used: Harper, Williamson, Gosling, Obertan
NEWCASTLE 2 SPURS 1 (Ba, Ben Arfa pen)
Krul; Simpson, S Taylor, Perch, Santon; Ben Arfa, Cabaye (Anita, 71), Tiote, Gutierrez; Cisse, Ba (Obertan, 85). Subs not used: Harper; R Taylor, Williamson, Gosling, Amalfitano
BRIGHTON 2 NEWCASTLE 0
Elliot, Tavernier, Perch (46' Dummett), Williamson, Santon, Anita, Abeid (46' Ranger), Bigirimana, Obertan (71' Marveaux), Shola Ameobi, Sammy Ameobi
Subs: Krul, Amalfitano, Ferguson, Campbell
BORDEAUX 2 NEWCASTLE 0
Elliot, Tavernier, Williamson (74' Coloccini), Perch, Ferguson, Abeid, Bigirimana, Ranger, Marveaux, Sammy Ameobi (46' Anita) Shola Ameobi (80' Cisse)
Subs: Krul, Simpson, Romain Amalfitano, Campbell
NEWCASTLE 1 MARITIMO 1
Krul, Simpson, S Taylor, Coloccini, Santon, Marveaux, Bigirimana, Anita, Sammy Ameobi (76' Abeid), Ben Arfa (40' Ba), Cisse (50' Amalfitano)
Subs: Elliot, Williamson, Ferguson, Tavernier'.
CLUB BRUGGE 2 NEWCASTLE 2 (Anita, Shola Ameobi)
Krul, Anita, Williamson (58' Steven Taylor), Coloccini, Tavernier, Tiote, Sammy Ameobi (83' Amalfitano), Marveaux, Bigirimana (72' Cabaye), Obertan, Shola Ameobi
Sub: Elliot, Santon, Cisse, Shane Ferguson
NEWCASTLE 1 CLUB BRUGGE 0 (Obertan)
Harper, Perch, Santon, Steven Taylor, Ferguson 80 (Cabaye), Obertan, Tiote, Bigirimana, Anita 46' (Shola Ameobi), Sammy Ameobi 73' (Coloccini), Cisse
Subs: Krul, Ben Arfa, Ba, Campbell
NEWCASTLE 3 BORDEAUX 0 (Shola Ameobi, Henrique og), Cisse)
Elliot (Harper, 46 ); Simpson, Williamson, Perch, Ferguson; Anita, Tiote (Gosling, 71), Cabaye (Bigirimana, 61); Cisse, Ameobi, Obertan.
MARITIMO 0 NEWCASTLE 0
Elliot, Santon, Williamson, Perch, S Taylor, Gosling, Amalfitano (Ferguson 76), Bigirimana, Obertan (Marveaux 80), Vuckic (Sami Ameobi 53), Shola Ameobi.
Subs (not used): Harper (gk), Tavernier, Abeid, Campbell
NEWCASTLE 1 ATROMITOS 0 (Vuckic)
Krul, Simpson, Coloccini, Williamson, Ryan Taylor (11 Vuckic), Obertan, Bigirimana, Perch (59 Tavernier), Marveaux (91 Amalfitano), Gosling, Ba.
Subs: Harper, Cabaye, Cisse, Campbell.
ATROMITOS 1 NEWCASTLE 1 (R Taylor)
Harper; Tavernier, Williamson, Perch, R Taylor; Bigirimana, Anita; Obertan, Gosling (Amalfitano, 64), Marveaux (Gutierrez, 71); Cisse (Campbell, 77). Subs not used: Krul, Santon, Cabaye, S Taylor.
MAN UTD 2 NEWCASTLE 1 (Cisse)
Elliot, Coloccini (Ferguson 61), Williamson, Perch, Tavernier, Gosling, Marveaux, Tioté (Bigirimana 71), Obertan, Vuckic (Cisse 81), Shola Ameobi.
Subs not used: Harper, Anita, Amalfitano, Sammy Ameobi.
CARDIFF CITY 4 NEWCASTLE 1 (Shola Ameobi pen)
Krul, Simpson, Coloccini (Williamson 46), Steven Taylor (Gosling 63), Santon, Obertan (Campbell 83), Tiote (Amalfitano 71) , Gutiérrez, Marveaux (Vuckic 46), R Taylor (Perch 28), Shola Ameobi.
HARTLEPOOL 1 NEWCASTLE 5 (Shola Ameobi, Marveaux 2, Obertan, Vuckic)
Harper (Alnwick 82), Simpson (Good 72), Tavernier, Williamson, S.Taylor (Vuckic 46), Perch (R.Taylor 72), Gosling, Amalfitano (Santon 80), Marveaux (Obertan 78), Sh.Ameobi (Ben Arfa 46), Bigirimana (Abeid 59).
DEN HAAG 0 NEWCASTLE 0
Krul; S Taylor (Gosling 65), R Taylor (Perch 71), Coloccini, Santon (Simpson 80); Obertan (Bigirimana 71), Tiote (Ameobi 71), Vuckic (Williamson 65), Gutierrez; Ba (Amalfitano 82), Cisse
BRAGA 1 NEWCASTLE 2 (Ba, R Taylor)
Harper; Simpson, Tavernier, Coloccini, R.Taylor; Sammy Ameobi (Obertan 88), Tiote (Cabaye 70), Gutierrez, Marveaux; Cisse, Ba (Vuckic 85).
OLYMPIACOS 1 NEWCASTLE 1 (S Taylor)
Krul, Perch, Williamson, S.Taylor (Dummett 46), Santon, Obertan (Sammy Ameobi 72), Bigirimana, Gosling (Abeid 36), Amalfitano, Vuckic, Shola Ameobi (Cisse 72).
FENERBAHCE 1 NEWCASTLE 1 (Abeid)
Elliot, Simpson (Santon 68), Tavernier, Coloccini, R Taylor, Tiote (Bigirimana 59), Gosling (Abeid 73), Obertan (Shola Ameobi 75), Marveuax (Gutierrez 59), Vuckic (Sammy Ameobi 46), Ba (Cisse 68).
MONACO 0 NEWCASTLE 1 (Ba)
Harper, Santon (Ryan Taylor 57), Simpson, Williamson (Perch 46), Gutierrez, Amalfitano (Obertan 62), Abeid (Tavernier 46), Bigirimana (Tiote 62), Sammy Ameobi (Vuckic 46), Shola Ameobi (Gosling 62), Ba (Marveaux 78)
CHEMNITZER 1 NEWCASTLE 0
Elliot; Tavernier (Simpson, 70), Williamson, Perch, R Taylor (Santon, 70); Obertan (Gutierrez, 77), Abeid (Bigirimana, 70), Gosling, Amalfitano; Vuckic (Shola Ameobi, 70), Sammy Ameobi (Ba, 77). Sub not used: Harper.