The Russian energy company has sponsored the club since 2006, but came under intense scrutiny from the German media due to the invasion of Ukraine.
Newspaper giants BILD have refused to show Schalke's shirt sponsorship in their coverage of the team, replacing the Gazprom branding with the phrase 'Solidarity with Ukraine'.
The main headline on the site also read 'BILD puts an end to Putin's advertising' and manager Dimitrios Grammozis was bombarded with related questions in his most recent press conference.
The club have now announced they will be removing the branding from their shirts, and replacing it with the Schalke 04 name instead.
"In view of the events, development and escalation of the past few days, FC Schalke 04 has decided to remove the lettering of its main sponsor - "GAZPROM" - from the jerseys," a club statement read.
"This step follows discussions with GAZPROM Germania. Instead, 'Schalke 04' will be on the chest of the Royal Blues."
Schalke still have an active deal with the Russian company, and had earlier released a statement branding them a 'reliable partner'.
"FC Schalke 04 is also following the latest developments in Eastern Europe with great concern," the club said.
"In this context, the club is aware of its special role among German sports clubs: With Gazprom Germania, a German subsidiary of the Russian state-owned energy company Gazprom.
"S04 has since 15 years he has a reliable partner and a relevant gas supplier of the Federal Republic of Germany at his side."
Earlier in the da, Schalke board member Matthias Warnig stepped down from his role with the club.
Warnig is the CEO of the £7.9billion gas pipeline project Nord Stream 2 which has now been halted by Germany's chancellor Olaf Scholz as a response to Russia's invasion.