Kelvin MacKenzie "will not return" to The Sun after a column in which he compared Everton midfielder Ross Barkley to a gorilla provoked outcry.
Parent company News UK announced its decision to part company with the tabloid's one-time editor, whose column from April 14 led to a printed apology.
A News UK spokeswoman said: "Further to our statement on 15 April that Kelvin MacKenzie's services as a columnist for The Sun were suspended, we can confirm that Mr MacKenzie's column will not return to The Sun and his contract with News Group Newspapers has been terminated by mutual consent.