The move comes four months after British Gas signed up to the Nectar loyalty scheme, which Sainsbury's has been a member of for more than 10 years.
Sainsbury’s chief executive Justin King will announce specific details on 9 February.
It is expected that Sainsbury's will undertake a major marketing offensive, offering electricity and gas packages to its millions of customers.
A statement on the Sainsbury's website said: "With effect from the 8th February 2011 the partnership between Sainsbury's Energy and EDF Energy will come to an end, after which all existing Sainsbury's Energy customers will continue to be customers of EDF Energy."
Sainsbury's said it is launching an "exciting new partnership" that will increase its range of products and services to include energy, insulation and home energy assessments.
EDF became Sainsbury's energy supplier in 2006. It offered a number of products and services but not roof insulation and solar panels.
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