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
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