The actor, who has played millionaire Pierce Hawthorne since the show's debut in 2009, and producers have agreed to the mutual split effective immediately, and he will not appear in the fourth season finale.
Chase's feelings about the show were made clear in a voicemail creator Dan Harmon posted online after the two men verbally attacked each other at a wrap show party earlier this year. Harmon has since apologised for going public with the audio.
The 69 year old called his decision to front the show ""a big mistake"", adding he only agreed to continue with the show because he enjoyed working with his castmates, explaining, ""It's not like I am working with the great innovators of all time, but at the same time, they are my friends.""
Earlier this season, production on the sitcom was briefly shut down after Chase used the N-word on set after becoming increasingly frustrated with the direction of his bigoted character.
Chase formally apologised to the cast and crew.