EY has won the audit contract for Sage, following a tender of the £2m deal.
PwC will step down after completing accounts work to 30 September 2014, bringing its 26-year audit relationship with the FTSE 100 software business to an end.
Sage announced its intention to tender the contract last month, citing incoming UK and European regulation changes as a factor in the decision.
PwC has worked as auditor for the business since its appointment in 1988. Sage did not state whether the firm took part in the tender process.
EY's appointment will be subject to approval by Sage's shareholders at its 2015 annual general meeting.
Sage is the latest in a series of listed companies to review audit arrangements ahead of October, when Competition and Markets Authority (previously Competition Commission) proposals for mandatory retendering come into effect.
EY has replaced PwC as auditor at Dignity and the London Stock Exchange, while PwC took over the FTSE 100 outsourcer Bunzl's audit contract from KPMG.
Despite a number of recent audit switch announcements, research from Bloomsbury Professional found just one in 20 (6%) of businesses with a turnover of more than £6.25m switched provider in the last financial reporting year before new rules are implemented.
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