Jonathan Ross has stepped down from presenting the 2008 British Comedy Awards, ITV announced today.
The broadcaster said it had agreed with the decision following the Andrew Sachs furore.
Ross was last night suspended for three months without pay by the BBC.
Ross was reported to be pocketing at least £100,000 for presenting the annual awards ceremony.
The star also loses around £1.5 million in pay from the BBC, because of his 12-week suspension without pay.
A spokesman for Ross said of the British Comedy Awards: "It's a show he very much enjoys being part of but would not want his participation in this year's event to take away from the awards themselves or the many talented winners of the awards."
ITV Director of Television Peter Fincham said: "We respect Jonathan's decision to stand down from the 2008 British Comedy Awards which has been made with the full support of ITV and the show's producers."
Last night, Radio 2 controller Lesley Douglas resigned, saying: "I believe it is right that I take responsibility for what has happened."
Russell Brand, who took part in the prank with Ross, has quit his Radio 2 show.
The British Comedy Awards regularly pulls in audiences of around 10 million, and according to its website it "features the most swearing, debauchery and drunkenness of any award show since The Pride of Britain Awards".
The event is in its 18th year and this would have been Ross's 17th year as host.
Previous ceremonies have seen appearances by Madonna, Steve Martin and Samuel L Jackson, Tony Blair and Archbishop Desmond Tutu.
The website boasts that the most swear words ever recorded at the awards was 487 during the 1995 show.
The TV presenter provoked fury among the BBC's senior management by joking when presenting last year's British Comedy Awards that his £6 million annual salary was "worth 1,000 BBC journalists".
Ross and Brand sparked anger when they left messages on the Fawlty Towers actor's answer phone in which they said Brand had slept with his granddaughter, Georgina Baillie.
The prank was broadcast on Brand's Saturday night Radio 2 show.
The BBC will be hoping Ross's three-month ban and the resignation of the Radio 2 boss will draw a line under the crisis.
Meanwhile, at Ross's home this morning, preparations were taking place in the front garden for the star's annual Halloween bash.
Asked whether Ross would be at the party, his wife, author Jane Goldman, said: "It's my children's Halloween party."
Comedian Jimmy Carr was also seen entering the Hampstead home.
He expressed his support for the BBC star, saying the issue had been been blown out of proportion and Ross was a "national treasure".
Police were also spotted going into the house, where they stayed for around 20 minutes.
Ross throws a fancy-dress bash for friends every year at his north London home and last year dressed up as a Clockwork Orange character.
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