The show, which is currently under investigation by Ofcom over a joke made about Katie Price's disabled son Harvey, attracted a large number of viewer complaints and drew disappointing ratings.
The 38-year-old stand-up also allegedly angered bosses by refusing to attend the upcoming British Comedy Awards after being told that he would not be involved in any of the on-stage sections of the show.
According to the Daily Mail, Channel 4's Chief Creative Officer Jay Hunt does not want to recommission Tramadol Nights, but Boyle could still be given a place on another future comedy series.
"It is a reality check for Frankie and a sign he is no longer a top priority for Channel 4," a source told the paper.
"He threw his toys out of the pram and told bosses he had no intention of going to the awards, which didn't go down well either."
> Boyle writer: 'Tramadol Nights was art'