Ajiboye originally joined York on a short-term loan from Peterborough United in November, with the winger reuniting with first-team manager Adam Hinshelwood after previously working together at Worthing.
The move comes after Ajiboye was transfer-listed from Peterborough, with his contract with Posh due to expire at the end of the 2024/25 season.
During his time at City, Ajiboye made nine appearances, including two in the FA Trophy.
Ajiboye scored his first two goals in a 3-1 win over Darlington after being forced into a one-on-one with Pete Jameson.
He also scored against Southend United, deflecting Malachi Fagan-Wolcott's header home in a 3-0 win.
York confirmed four days ago that Ajiboye had returned to parent club Peterborough at the end of his loan deal, and Hinshelwood held a recruitment meeting earlier this week to plan for the remainder of the campaign. .
Since returning to Peterborough, Ajiboye has moved to League Two side Newport County until the end of the season.
Newport currently sit 18th in League Two, six points behind relegation-placed Morecambe.
A three-game losing streak, with nine goals conceded in that span, means Newport need to find form if they are to get out of the drop zone.
Speaking about his move to Newport, Ajiboye told the club's website: That's what I really wanted.
“I have been talking to my agent and Peterborough about this move. Newport were interested and everything seemed positive. I had a great conversation with the manager and it made perfect sense.
“I think playing a lot of games will definitely help me get in.
“Many players have benefited from experience and I hope I can contribute to the team and help them move up the table.
“I’m quick, I like dribbling with the ball at my feet and I can send in good crosses, so I hope that pays off in attack.”
“My goal is to hit the ground running, get a lot of assists this season, score a lot of goals and, of course, bring the team a lot of wins.
“That's what every player dreams of: giving it their all. Hopefully I can get a goal or an assist early on and build from there.
“I’m really looking forward to this opportunity, I’ve played here a few times before so now I get to be on the other side and play for Newport in front of the Amber Army. I'm very excited.”
Ajiboye could make his Newport debut when they visit Port Vale on Saturday (3pm).
