Esteban Ocon has been permanently dropped by the Haas team.
The Frenchman will be replaced at this weekend's Sao Paulo Grand Prix by Brazilian rookie Rafael Camara, who has been signed by the team for 2027.
Haas released a statement saying Ocon would "no longer compete on its behalf in the 2026 world championship".
The move comes after Ocon was replaced following Friday's practice at the Mexico City Grand Prix weekend, apparently after a row with team principal Ayao Komatsu.
Haas have given no details as to what led them to drop Ocon in Mexico.
Komatsu said in a statement from Haas on Tuesday: "We have now notified Esteban Ocon that he will not return to a race seat with Haas this season.
"Such decisions are never made lightly, as was the case in Mexico City - but then, as now, we feel this is firmly in the best interest of the team moving forward.
"The conversations that ultimately unfolded between the team and Esteban remain an internal matter, and we will continue to respect the private nature of closed-door situations."
Ocon, who has driven in 198 grands prix since making his debut in 2016 and has one victory, looks set to be out of a race seat for 2027 as the only teams with potential vacancies - Racing Bulls and Cadillac - are said not to be interested in him.
He is looking for a reserve drive as a way to stay in the conversations in the paddock.
Ocon was dropped on Saturday morning in Mexico City and replaced by Haas' Japanese reserve driver Ryo Hirakawa.
The decision to stand him down came after he had a dispute with race engineer Laura Mueller about tyre choice during second practice on Friday.
The following day, Ocon released a statement saying he "categorically rejected any reports or allegations suggesting that any form of physical violence was used to resolve any differences of any nature".
He admitted that "a difference in viewpoints led to a discussion with the parties involved".
His statement followed a report in France's L'Equipe which said that a meeting between Komatsu and Ocon "ended abruptly, perhaps even physically".
Haas have not said who will drive in Ocon's place in the remaining races of the season after Sao Paulo this weekend.
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