The company announced the news in a brief statement on their website which read: "WWE has come to terms on the release of Eric Arndt (Enzo Amore)."
Arndt had previously been suspended and the company had said: "WWE has zero tolerance for matters involving sexual harassment or sexual assault.
"Until this matter is resolved, Eric Arndt (aka Enzo Amore) has been suspended."
Arndt subsequently released the following statement through his legal team: "Over the past two days, Philomena Sheahan has made multiple public accusations against Eric Arndt (also known as Enzo Amore with the WWE), including allegations of sexual misconduct concerning an October 2017 incident in Phoenix.
"Mr Arndt fully and unequivocally denies those accusations. He is cooperating with authorities in this matter and looks forward to having it resolved in a timely manner. Neither Mr Arndt nor his counsel will be making any further public comments on this matter."
Amore had most recently been the Cruiserweight champion and was the leader of the Zo Train faction on the 205 Live show.
He has been an active singles competitor since his split from tag team partner Big Cass, with whom Amore had formed a team in NXT and then on Monday Night Raw.
Cass suffered a knee injury shortly after the break-up and has been out of action since.
The duo were hugely popular due to Amore's entrance speech and his microphone ability and were one of the top merchandise sellers in WWE.