Sophie is said to have made an offensive comment on camera while filming the hit MTV series, leading bosses to remove her from the show once they found out.
In a statement first reported by The Sun and later confirmed by Reveal, a spokesperson said: "After an incident last week, Sophie Kasaei was removed from Geordie Shore pending further investigation into alleged offensive behaviour.
"MTV and Lime Pictures have now taken the decision that it is inappropriate for Sophie to return to the show.
"We will be reiterating to the remaining cast members that offensive behaviour will not be tolerated."
No further details have been confirmed by MTV.
Sophie and cast mates including Holly Hagan, Gaz Beadle and Vicky Pattison have been filming scenes for the seventh series of the show, which has been a hit around the world.
The sixth season, which is currently airing on MTV, was filmed in Australia, with the gang staying in a beachfront house in Sydney and getting up to their usual mischief.
Former show star Jay Gardiner returned for the series, after previously bowing out of the show last year to focus on his relationship.