The actor, who played mechanic Scott Windsor, has been on a leave of absence from the soap since being charged with rape in Barbados in December last year.
An ITV spokesman told the News of the World: "We cannot be sure of Ben's availability for work, so we cannot renew his contract. It is due to the uncertainty of the process of law and the lead times in writing a character in and out of a soap."
Freeman said: "I am focusing on the legal proceedings in Barbados and look forward to speaking to ITV once this situation is behind me."
A TV source added: "This was the bad news Ben desperately didn't want."
> Dec 3, 2006: Freeman charged with rape
Soap Scoop
'Neighbours' Chris romance story - PicsChris and Aidan's Neighbours romance story is about to kick off on UK screens.
Soaps Interviews
Emmerdale star talks John death aftermathWe chat to Emmerdale's Adam Thomas about John's death and more.
Soap Ratings
Emmerdale crash drama beats EastEndersEmmerdale is the most-watched soap on Thursday evening.
Reality Bites
'Big Fat Gypsy Weddings' returns: ReviewReality Bites's verdict on the return of Big Fat Gypsy Weddings.
