The Tower Heist director caused controversy last Friday (November 4) during a question and answer session for the film, during which he described rehearsals as being "for f*gs". However, he later apologised for the remarks, insisting that he had no intention of causing offence.
On Tuesday, AMPAS president Tom Sherak spoke out in support of Ratner, admitting that his remarks were "inappropriate" but insisting that he would not be penalised for the incident and would proceed as planned with his work for the telecast.
However, Ratner has since tendered his resignation from the producing post, a decision which Sherak has praised as being the "right thing" for all parties involved.
The filmmaker told the media: "Being asked to help put on the Oscar show was the proudest moment of my career.
"But as painful as this may be for me, it would be worse if my association with the show were to be a distraction from the Academy and the high ideals it represents."
Ratner added that he "deeply" regrets his actions and is "determined to learn from [the] experience".
"He did the right thing for the Academy and for himself. Words have meaning, and they have consequences. Brett is a good person, but his comments were unacceptable," Sherak said in a statement.
"We all hope this will be an opportunity to raise awareness about the harm that is caused by reckless and insensitive remarks, regardless of the intent."
Last month, Ratner said that he is not nervous about directing the Oscars and expressed relief upon hearing that Eddie Murphy will host the event.
> Oscars 2012: How Brett Ratner lost his Academy Awards job
Watch a video of Brett Ratner's original comments during the Tower Heist press conference below: