Sponsor, Zoopla have been reviewing their £3million-a-year agreement with Albion following Nicolas Anelka's controversial 'quenelle' celebration at West Ham on December 28.
The property website say they will focus their attention on other marketing activities at the end of this campaign.
Anelka was named in the starting line-up for West Brom's match with Everton on Monday night at the Hawthorns, Pepe Mel's first game in charge of the club which ended a goal apiece.
Zoopla had threatened to end their sponsorship with the club said if Anelka plays against Everton on Monday night
The property website, which is co-owned by a Jewish businessman, was unhappy at the continuing presence of Anelka in the team while his actions were investigated by the Football Association.
Head of Communications for Zoopla, Lawrence Hall said, 'Through our sponsorship of West Bromwich Albion we are pleased to have supported the local community and charities.
'In recent weeks, however, we have decided to re-evaluate this sponsorship and as a result we will focus our attention on other marketing activities from the end of the season.'
West Brom also issued the a statement on Monday evening to clarify its position with Zoopla:
It said: ‘West Bromwich Albion has been fully aware since the sponsorship agreement came into force in June 2012 that its partnership with Zoopla could expire this summer and therefore has been planning accordingly.
‘Zoopla has today informed the club in writing that it does not wish to extend its sponsorship deal. The club will now actively seek a new official sponsor for next season.’
Anelka, in his defense, claimed the gesture was for his friend French comedian Dieudonne and there was nothing racist about the gesture