Stephanie, who plays Sinead O'Connor, will not be filming anymore scenes as show bosses have decided to terminate her contract.
A Hollyoaks spokesperson said: "Stephanie Davis will no longer be filming Hollyoaks. Her contract has been terminated with immediate effect."
No further details have been revealed, including the reason behind Stephanie being dropped and if the character will be permanently written out of the Chanel 4 soap.
Reveal have contacted Stephanie's rep for comment.
It was only in April that Stephanie confirmed she had signed a new 12-month contract with Hollyoaks.
Stephanie, 22, joined the soap as Sinead in 2010. Some of her biggest storylines include her bullying plot with Esther Bloom, a prostitution story, and the death of Sinead's baby daughter Katy.
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