Head coach Rob Moffat said: "Ally has opted to test himself in pastures new. He has had tough luck with injury this season but we wish him well and thank him for the commitment, leadership and rugby playing ability he has brought to the Edinburgh cause since he joined us in 2002."
Hogg, 27, who returned to action for Edinburgh tonight - in their 28-37 Magners League loss against Leinster - for the first time since last December, said: "I've enjoyed my eight years with Edinburgh. I've learned my trade here and played with a lot of great players in a good few teams.
"I am sad to go but I'm looking forward to the new challenge I'll face at Newcastle. Obviously I'll be playing in a different competition and I hope the move will help to improve me as a player. I thank all the Edinburgh players, coaches, staff and fans, for all their support over the years."
Hogg played his 138th game for Edinburgh tonight having spent most of the season sidelined with a frustrating hip injury which required surgery to resolve.
But as he departs, the club can confirm the re-signing of another international back-row forward. Ross Rennie, 24, who won his only cap to date against Ireland two years ago, has agreed a new two-year deal.
Moffat said: "I'm delighted we've retained Ross. We've only seen him fleetingly over the last few months because of injury but I'm looking at him having a good pre-season and challenging for a starting place next season. At his best he is one of the most dynamic, intelligent and courageous open-sides in the country."