Xuecheng, a Communist Party member and abbot of Beijing's Longquan Monastery, is one of the most prominent figures to face accusations in China's growing #MeToo movement.
He is under criminal investigation after a report by fellow monks accused him of sexual and financial improprieties, including coercing several nuns to have sex with him.
Investigators had also uncovered evidence that his monastery had broken national financial rules.
A prominent personality in Chinese Buddhist life with a social media following of millions, Xuecheng's presence on China's Twitter-like Weibo service has been silent since Aug 1, when he posted a statement rejecting the sexual assault claims.
The Buddhist Association of China said in a statement the decision to remove him as abbot was made in a meeting last Friday after consulting a report by the country's top religious authority.
"We have removed Xuecheng as the abbot of Beijing Longquan Monastery," it said.
He had stepped down as head of the Buddhist association earlier this month.
The 95-page report, which circulated online late last month, contained allegations from two monks that Xuecheng had sent explicit text messages to at least six women.
The monks accused Xuecheng of threatening or cajoling the women to have sex with him, claiming it was a part of their Buddhist studies.
In their report, the two monks, who are no longer members of the monastery, said four women gave in to Xuecheng's demands.
Both men were also asked to leave Longquan monastery after news of the report broke.
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