The 25-year-old scored one goal in 58 games in two seasons for the U's, having moved from Rotherham in 2015.
Newton began his career at Newcastle United but never made a first-team appearance for them.
His most successful stint came on loan to St Mirren, where he won the Scottish League Cup in 2013.
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Hartlepool United have signed midfielder Conor Newton on an undisclosed contract following his release by Cambridge United.