Krafth came to England ahead of the 2019/2020 season and has played 106 games for Newcastle during his time at the club.
In a video published on the club's website, he becomes tearful as teammates send their greetings.
"I have created fantastic memories here and Newcastle is a place I have been very proud to call home," says the 31-year-old.
During his time at Newcastle, Krafth was part of the team that won the English League Cup in 2025.
Krafth has made 52 international appearances for Sweden but was not selected in national team manager Graham Potter's squad for the World Cup in Mexico, Canada and the USA this summer.
