After massive speculation it was confirmed by BBC Director General Tony Hall that Jeremy's contract will NOT be renewed but Top Gear will continue.
In a statement, Lord Hall said: "It is not a decision I have taken lightly. I have done so only after a very careful consideration of the facts and after personally meeting both Jeremy and Oisin Tymon."
Jeremy was suspended earlier this month following an altercation with Oisin, a producer on the show, during filming. Production on Top Gear was halted.
"A member of staff – who is a completely innocent party – took himself to Accident and Emergency after a physical altercation accompanied by sustained and prolonged verbal abuse of an extreme nature. For me a line has been crossed. There cannot be one rule for one and one rule for another dictated by either rank, or public relations and commercial considerations.
"This decision should in no way detract from the extraordinary contribution that Jeremy Clarkson has made to the BBC," said Lord Hall.
"I have always personally been a great fan of his work and Top Gear. Jeremy is a huge talent. He may be leaving the BBC but I am sure he will continue to entertain, challenge and amuse audiences for many years to come."
Although Jeremy will no longer be part of the show, Lord Hall has insisted the BBC will continue to produce and support Top Gear going forward.
"The BBC must now look to renew Top Gear for 2016. This will be a big challenge and there is no point in pretending otherwise."
Jeremy has yet to comment.
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