Newland took over from Charles Moore, when he resigned as editor in October 2003.
It had been speculated that Newland's job might be under threat after the Barclay brothers took over the Telegraph Group last year.
However, soon after the takeover, it was reported that Newland had been reassured of his position and praised for doing a good job during Lord Black's ousting from the company and the ensuing Hollinger scandal.
This is confirmed in a statement issued by the Telegraph Group, which says the decision to go is Newland's own.
His departure is the latest shake-up in senior editorial at the Telegraph Group. Dominic Lawson stepped down as editor of the Sunday Telegraph in June this year to be replaced by Sarah Sands, formerly deputy editor at the Daily Telegraph.
Murdoch MacLennan, Telegraph Group chief executive, said that it he and the Barclay brothers "had hoped to work with him for the foreseeable future, so it is with regret to us all that he has decided to move on".
MacLennan said "Martin Newland has guided The Daily Telegraph with distinction through a difficult period, especially during the sale of the company by Lord Black.
"He has attracted a team of brilliant writers, pioneered the new business and sports sections and overseen the redesign and modernisation of the newspaper."
Newland added: "Editing The Daily Telegraph has been a privilege. It has been a marvellous experience working with so many great journalists and building the newspaper's reputation as the UK's market leader.
"I would like to thank Sir David and Sir Frederick Barclay and Aidan Barclay for their kindness and good wishes."
As well as Bryant's recent appointment in September, the Daily Telegraph appointed Jeff Randall as a business columnist. The former BBC business editor and one-time editor of The Business newspaper had at one stage been tipped as a potential editor of the Telegraph when the Barclay brothers took over.
In the most recent ABCs, the Daily Telegraph recorded a 0.29% decline to 901,667.
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