The club have taken the decision to axe their second team, who played in the second division, due to their poor disciplinary record and slowness to pay the club for their fines.
Sunday League chairman Mark Plumpton said: "I have a lot of respect for Joe Hakings, who runs Newlands, for making the decision to pull the reserves out of the league.
"The reserves have had a very bad record in recent weeks, having three red cards in two weeks and they were up on a disciplinary charge from the league.
"Joe has pulled them out because he has now become aware of their poor attitude and behaviour, especially after they played against them in the cup recently, and was also frustrated at their slowness in paying the club owed monies.
"While it is always bad news to lose a club, we would rather have teams that want to turn up and play football as opposed to sides who behaved in this manner."
This means that there are now only six clubs in Division Two and nine in the top flight.