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Oxtoby coached Bristol City from 2018 to 2021 before becoming assistant coach to Emma Hayes at Chelsea for two seasons.
The Australian also had spells with Scotland, Birmingham City and Perth Glory and was an assistant for the Australia Under-20s.
She began her managerial career at Nottingham Forest in 2012.
Under Oxtoby, Northern Ireland lost to Norway in a Euro 2025 qualifier last year.
Last month, in what proved to be Oxtoby’s final two games, they lost 5-0 to Iceland on aggregate to miss out on promotion to the top tier of the UN League.
“It has been an honor and a privilege to lead Northern Ireland,” Octopi told the Irish Football Association website when announcing her departure.
“We have seen a tremendous transfer of young players and the creation of a real high-performance environment which is a huge credit to the players and staff alike who I have had the pleasure of working with during my time in charge.
“I wish everyone well for the future. Thank you fans for your continued support on this journey. Northern Ireland and the Green and White Army will always have a special place in my heart.”
Newcastle have been without a head coach since the departure of Becky Langley on 21 October and the club is ninth in the table.
They turn fully professional in 2023 and finished fifth in their first season in the second tier last season.
This season, the top two teams from WSL 2 will receive automatic promotion to the top flight, while the third-placed team faces a play-off with the bottom club in the WSL.
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